News & Analysis as of September 20, 2024

Consumer Bankruptcy › Tuition

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Consumer bankruptcy is a process to reduce or eliminate personal as opposed to business debts. Consumer bankruptcies can be filed under either Chapter 7 or Chapter 13 of the bankruptcy code. Debtors are... more +

An Emerging Trend in Favor of Student Loan Discharges in Bankruptcy

Hinshaw & Culbertson LLP on 2/11/2020

We recently reported on a Fifth Circuit decision that ruled some private, for-profit student loans are dischargeable in bankruptcy without a showing of undue hardship—something unusual and inconsistent with the widely-held...more

First Circuit Clarifies When College Tuition Can Be Considered A Fraudulent Transfer

Husch Blackwell LLP on 12/13/2019

Last month the First Circuit Court of Appeals became the first federal appellate court to take up the matter of whether college tuition paid for an adult child by a bankrupt parent constitutes a fraudulent transfer. Chief...more

First Circuit Holds that Parents' Payment of Tuition for an Adult Child Can Be Avoided as a Fraudulent Transfer: Colleges,...

Pullman & Comley, LLC on 12/6/2019

Bankruptcy trustees continue to vigorously pursue actions in which they sue colleges, universities and other institutions of higher education to recover tuition payments made by parents for their children when the parents...more

First Circuit Holds that Parents’ Tuition Payments for Adult Children Are Fraudulent Transfers

Bradley Arant Boult Cummings LLP on 12/2/2019

Recently, the First Circuit held that a parent’s tuition payments on behalf of an adult child do not benefit the parent’s bankruptcy estate, and a Chapter 7 trustee may therefore claw the payments back as fraudulent...more

Bankruptcy Trustees Receive Early Holiday Present – a Circuit Level Win Against Colleges in the Tuition Clawback Cases

BCLP on 11/13/2019

We here at the Global Restructuring & Insolvency Developments (GRID to our friends) have been following the tuition clawback wars for a few years – the cases in which a bankruptcy trustee sues a college to return tuition that...more

Trustee Litigation Trend: Tuition Clawback

Moritt Hock & Hamroff LLP on 8/20/2019

“An investment in knowledge always pays the best interest.” Benjamin Franklin, The Way to Wealth: Ben Franklin on Money and Success (1758). For parents paying their adult child’s college education costs, however, this...more

Are College Tuition Payments Subject to Claw Back by Bankruptcy Trustees? - It Depends.

Tucker Arensberg, P.C. on 4/30/2019

Bankruptcy Courts throughout the country are split on the socially charged issue of whether tuition payments made by parents for their adult children can be recovered by a bankruptcy trustee as “constructively fraudulent”...more

Another Bankruptcy Court Weighs in on the Tuition Clawback Controversy

Pullman & Comley, LLC on 1/9/2019

Bankruptcy trustees continue to vigorously pursue actions in which they attempt to “clawback” tuition paid by parents to colleges, universities and other institutions of higher education for their adult children’s...more

SDNY Joins the Rush Party, Rules for Trustee in Another Child Tuition Clawback Case

BCLP on 12/5/2018

We at the BCLP Global Insolvency and Restructuring Developments (the GRID) continue to watch and cover the growing jurisprudence of trustees seeking to recover pre-petition tuition payments made by a debtor parent to support...more

Colleges’ Liability For Defaulting Parents Narrowing?

Akerman LLP on 3/30/2018

Good news for colleges: Connecticut may be on the leading edge of a trend to bar bankruptcy trustees from pursuing colleges when parents default on their “Parent PLUS” loans. When a parent signs a “Parent PLUS” loan to...more

No Trustee Left Behind – Another Bankruptcy Court Requires Colleges to Return Tuition to the Bankruptcy Estate

BCLP on 2/14/2017

Another bankruptcy trustee catches another hapless college unaware. In Roach v. Skidmore College (In re Dunston), Bankr. S.D. Ga. (Jan 31, 2017), a trustee appears to win the next battle of “bankruptcy estates v. child’s...more

The Trend Reverses: College Tuition Payments Shielded from Avoidance in Bankruptcy - Bankruptcy Court Rules in Favor of University...

Holland & Knight LLP on 8/31/2016

It is the start of a new semester, and all across the country, parents are writing tuition checks to the colleges and universities that their children attend. Colleges accept the checks on behalf of the students, the tuitions...more

Reversing the Trend: Will Congress Act to Except College Tuition Payments from Clawback in Bankruptcy? - Congress Weighs...

Holland & Knight LLP on 7/21/2015

A trend emerging in consumer bankruptcy cases around the U.S. is causing concern for many parents, students and undergraduate schools. As was reported by The Wall Street Journal in an article published on May 5, 2015, an...more

Bankruptcy Beat: An Emerging Trend: Bankruptcy Trustees Seeking to Claw Back Tuition Payments Made by Unsuspecting Parents

Pullman & Comley, LLC on 7/17/2015

A developing trend in our nation’s bankruptcy courts has been the number of lawsuits filed or threatened by bankruptcy trustees to recover tuition payments made by a student’s parents when the parents later file for...more

Bankruptcy Trustees Target Colleges and Universities

Ballard Spahr LLP on 5/15/2015

Over the past few years, higher education institutions have seen an increase in litigation from an unexpected source: bankruptcy trustees. Trustees appointed in personal bankruptcy cases are seeking to claw back tuition...more

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Consumer Bankruptcy › Tuition

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