Does a school have to let a student graduate if tuition is included in a Chapter 13 re-payment plan?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Does a school have to let a student graduate if tuition is included in a Chapter 13 re-payment plan?
My husband and I are about to file Chapter 13. He attended barber college for 1 year and 1 week before he would be finished, he was forced to stop until the balance of $6000 was paid. This amount will be included in our repayment plan. Is the school obligated to let him finish the schooling and obtain his license once the bankruptcy is filed? Or would he have to wait until the end of the plan (5 years)? As a side note, the original quoted obligation was $600 and after he spent a year there and they had received over $4000 from Pell Grants, they upped tuition to $6000.
Asked on April 19, 2011 under Bankruptcy Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
The problem is that while filing bankruptcy can prevent collection action agains someone for an existing debt, it does not necessarily obligate businesses or people to provide goods or services going forward without being paid for them. Therefore, it is likely that the school will be precluded from pursuing him for the $6,000, but it may not be required to allow him to go to any more classes, fulfill his requirements, get a diploma, or attend graduation. It may certainly be possible to negotiate with them that they will do this; it is also possible that the bankruptcy court would order them to allow him to finish--much will depend upon, I suspect, whether his graduation is just a "formality" (he's fulfilled all requirements already) or whether the school has to provide additional classes or services. It is worthwhile bringing up in bankruptcy, but be prepared that if your husband needs any additional classes or must fulfill any new requirements, it may be the case that the school does not need to provide these things without being paid.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.