Transcript denied on discharged tuition debt

[chuckySeven]

Hello,

Recently I declared ch 7 bankruptcy PRO SE and all of my debts, beside student loans, were discharged. This includes a judgment / debt of about 1000 for tuition, which of course shows as being discharged on my credit report / etc.

My alma mater refuses to issue copies of my transcript unless I pay back the tuition for a partial semester that I dropped out of (due to the financial problems leading to my ch 7...).

Please advise. Should I contact the bankruptcy judge? The BK was filed / discharged in MN. The school is in IN.

Thanks!

-chuckySeven

[justbroke]

My alma mater refuses to issue copies of my transcript unless I pay back the tuition for a partial semester that I dropped out of (due to the financial problems leading to my ch 7...).

Was this specific student debt discharged in your Bankruptcy?

[chuckySeven]

Discharged...

justbroke,

Yes, my debt for tuition was listed as being discharged. The judgment they obtained to collect the debt with was discharged - and my credit report reflects this.


I assume that I should contact the federal bk court in some way, asking them to tell the university to release my records. This seems like a reactive collection technique - just wait until somebody needs their transcript...

Since I filed PRO SE all I have to refer to is the manual, this forum, and web searches about this matter.

Thanks for the interest / response...

chuckySeven

[cinderella]

I have heard of these horror stories. I know someone who had their cell phone bill discharged however they were refused service unless they paid even though their debt was discharged. Does anyone else have similar experiences?

[SweetGeorgia]

Is the school private or public?

Either way, you need the name/address/phone/fax of the school's General Counsel. The registrar's office obviously isn't getting it.

[justbroke]

justbroke,

Yes, my debt for tuition was listed as being discharged. The judgment they obtained to collect the debt with was discharged - and my credit report reflects this.


I assume that I should contact the federal bk court in some way, asking them to tell the university to release my records. This seems like a reactive collection technique - just wait until somebody needs their transcript...

Since I filed PRO SE all I have to refer to is the manual, this forum, and web searches about this matter.

Thanks for the interest / response...

chuckySeven

Remember, these are only suggestions as I'm trying to help, not hurt your case.

First, find out who the Director of Admissions, the Director of Srudent Services (the Bursar), and the President of the Institution. Get their names and addresses. If possible, find out if the School has legal counsel and get their general counsel's name and address to.

Write a letter with the points I'm sending in a PM.

[JRScott]

Forget what I wrote earlier......I found some new case law that could help your case, however I'm not sure the judge would necessarily help you.

http://www.ca7.uscourts.gov/fdocs/docs.fwx?submit=rss_sho&shofile=07-3954_019.pdf

That's a ruling from this year by the 7th court of Appeals. In it it states that withholding transcripts as is the case here is against the law.

There is one case in case law I think in Pennsylvania in 2002 that had stated it was within their rights so it could also depend on your district. However it is certainly worth pursuing.

[justbroke]

JR, actually there is pretty good caselaw out there stating that you can't hold the transcripts when the debt is discharged. The transcript is not "secured" debt.

Here are a plethora of things to chew on.

Stefanie Kim Kuehn v. Cardinal Stritch University (US Court of Appeals for the Seventh Circuit issued a ruling on April 16, 2009) http://www.websupp.org/data/WDWI/3:0...368-8-WDWI.pdf

Financial Aid Org... the law "permits colleges to withhold academic transcripts for default of a HEAL loan, except when the borrower has filed for bankruptcy. "

Financial Aid Org... "Colleges may not withhold an official transcript after the filing of a bankruptcy petition or after the discharge of education debts under either Chapter 7 or Chapter 13. This stems from three provisions of the bankruptcy code:

1. Automatic Stay. 11 USC 362(a)(6)
2. Anti-Discrimination. 11 USC 525
3. Discharge Injunction. 11 USC 524(a)(2)

There is ample case law finding that withholding academic transcripts is a violation of the automatic stay provision. Examples include Loyola University v. McClarty, 234 B.R. 386 (Bankr.E.D.La.1999); In re Scroggins, 209 B.R.727 (Bankr.D.Ari.1997); In re Carson, 150 B.R. 228 (Bankr.E.D.Mo.1993); In re Merchant, 958 F.2d 738 (6th Cir.1992); In re Gustafson, 111 B.R. 282 (Bankr. 9th Cir.1990), rev'd. on other grounds 934 F.2d 216 (9th Cir.1991); In Re Parham, 56 B.R. 531 (Bankr.E.D.Va.1986); In re Dembek, 64 B.R. 745 (Bankr.N.D.Ohio.1986); In re Reese, 38 B.R. 681 (Bankr.N.D.Ga.1984); In Re Ware, 9 B.R. 24 (Bankr.W.D.Mo.1981); In re Lanford, 10 B.R. 132 (Bankr.D.Minn.1981); In re Heath, 3 B.R. 351 (Bankr.N.D.Ill.1980); In re Howren, 10 B.R. 303 (Bankr.D.Kan.1980). Financial Aid Org

However, in a case involving Temple University, In re Billingsley, 276 B.R. 48, 53 (Bankr. D. N.J. 2002), the bankruptcy court broke with precedent and found that the college's refusal to release academic transcripts was not a violation of the automatic stay provision because the student loan was nondischargeable. Financial Aid Org

http://www.finaid.org/educators/withholdingtranscripts.phtml

[SweetGeorgia]

A little googling, and I think you're in luck. Recent case out of the Seventh Circuit (which includes IN) ruled that this exact practice wasn't allowable. Look up In Re Kuehn, which was a Wisconsin case originally. Opinion of the 7th issued April of this year.

Her full name is Stefanie Kim Kuehn, making for easier googling.

[JRScott]

JR, actually there is pretty good caselaw out there stating that you can't hold the transcripts when the debt is discharged. The transcript is not "secured" debt.

Here are a plethora of things to chew on.

I changed my post 5 minutes before you posted yours.....

[JRScott]

A little googling, and I think you're in luck. Recent case out of the Seventh Circuit (which includes IN) ruled that this exact practice wasn't allowable. Look up In Re Kuehn, which was a Wisconsin case originally. Opinion of the 7th issued April of this year.

Her full name is Stefanie Kim Kuehn, making for easier googling.

That's the link I provided above for that case.

The OP might could solve the problem with a letter to the school quoting the legal precedent and asking for release of the transcripts. He could also approach the judge since he filed pro se with the letter asking the court to order the school to comply with the law. However if the school refuses he may need counsel to proceed further or do further research on how to bring a case against them.

[justbroke]

That's the link I provided above for that case.

The OP might could solve the problem with a letter to the school quoting the legal precedent and asking for release of the transcripts. He could also approach the judge since he filed pro se with the letter asking the court to order the school to comply with the law. However if the school refuses he may need counsel to proceed further or do further research on how to bring a case against them.

I sent the OP a PM with a draft (shell) of a letter with everything but the case citations... and it included a demand to comply or face Sanctions.

In eitehr case, the OP would need to re-open their case, if it's closed, at a cost... in order to file Sanctions and/or a Motion to Compel.

I changed my post 5 minutes before you posted yours.....

I was still writing mine, when you changed yours. No worries.

[SweetGeorgia]

Ha! I was still reading the case while others were posting it. Glad you sent the OP a letter to use, justbroke.

I hope they don't give him much trouble over this.

[justbroke]

Ha! I was still reading the case while others were posting it.

There are a lot of smart and helpful people here.... and we all think similarly. Scary!

[bkmaggster]

I have heard of these horror stories. I know someone who had their cell phone bill discharged however they were refused service unless they paid even though their debt was discharged. Does anyone else have similar experiences?

Cinderella, I'm in the middle of this with tmobile, I'm just dropping them and forgetting about it.

It seems to me that holding transcripts is a mockery of academic integrity. Is this a private or public institution?