College transcript holds during the automatic stay

[sscott4775]

Hi everyone,

I wasn't exactly sure where to post this, so my apologies if this was the wrong location. I have a few questions regarding the issuance of college transcripts after filing for a Chapter 7. I have an unpaid tuition debt (not a student loan) and the college still has the holds listed even though they've been notified of the filing. I had contacted the registrar's office several months prior to filing and asked them about whether the debt was dischargeable, and they said that it was, but they would need a copy of the discharge injunction before they would release copies of the transcript.
What I'm wondering is, wouldn't it be a violation of the automatic stay for them to continue to withhold the transcript before the discharge goes through? It's obviously an attempt to collect an unpaid debt and it seems to me that this wouldn't be allowed.
By the way, I try to order a copy of the transcript electronically, but it denies me because of the holds. Does anyone know if I would have to do this in writing or would they probably just stick to their guns and wait until the discharge goes through?

Thanks for your help!

[tcreegan]

Hi sscot,

Courts have consistently ruled that witholding transcripts after a BK filing is a violation of the automatic stay. Tacked a bunch of cases below for you. Some rulings the other way, but those seemed to hinge on a non-dischargeable debt, not a dischargeable one like you have.

A college might be a fountain of knowledge, but the registrar and business office might be only vaguely aware of BK law. Often there is a fairly ingrained opinion that what they do is the law everyone needs to follow. Breaking them out of the mold might take a lever from higher up in the organization; an ombudsman, the college legal counsel, the business VP, someone.

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).

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

Good luck with this,

Tom in Colo

[sscott4775]

Tom,
This is incredible! Thank you so much for these cases, they will help out so much! I'm thinking about sending them a letter outlining that I believe the continued withholding of the transcript is a violation of the automatic stay since it is an attempt to collect a debt and list the pertinent case law along with it plus $7.00 for the transcripts. Surely, if they want to consult with their general counsel, the attorney will recognize these cases and advise them in accordance with these cases, because like I said, this is not a student loan by any means.

Thanks again!!

[Shanfish]

Thanks for asking this question (and for the answer!). I will be fighting the same battle in less than 2 weeks. I've advised of the filing but they refuse to budge. Once I get my stay, I am trying again.