News & Analysis as of

Universities Chapter 7

Epiq

The Future of Student Loans and Bankruptcy – Is There a Bubble Waiting to Burst?

Epiq on

In March 2021, the U.S. Department of Education noted that student loan borrowers owed $1.6 trillion federal and private loans. For many, loans are the only option to attend a U.S. university or college for undergraduate,...more

Moritt Hock & Hamroff LLP

Trustee Litigation Trend: Tuition Clawback

“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

Tucker Arensberg, P.C.

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

Tucker Arensberg, P.C. on

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

BCLP

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

BCLP on

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

Holland & Knight LLP

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

Holland & Knight LLP on

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

Holland & Knight LLP

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

Holland & Knight LLP on

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

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