Is This Legal After You File Bankruptcy?

[joie]

3 1/2 yrs. ago I filed bankruptcy chapter 7. I was going under from medical bills. Everything was discharged. I recently went to go back to college because of the economy. The college I had attended was one of the creditors that I filed bankruptcy against for $750. It was discharged, like I stated, & none of my creditors ever showed up at the bankruptcy hearing. Now the college told me they won't release my transcripts unless I pay off the $750. I told them & showed them my bankruptcy papers & discharge letter. They said that doesn't matter they want their money. I thought that that is one of the wonderful things about our country that we can, when very hard times come, make use of this law. Shouldn't that $750 since it was discharged be as if it had not existed? I have paid a high price for having filed bankruptcy & should not have to continue to be treated like dirt. How can they take a Federal Law like Bankruptcy Chapter 7 & then put their own spin on it? It isn't like I just didn't want to pay them back then. What should I do & what can be done? Thank you for you time.

[SteveD466]

You need to find out the basis of the college loan you took. The majority of college loans are not discharged under bankruptcy law and if this is one of those loans, then you still owe the debt and the college is well within their rights (under most entrance agreements) to withhold the transcripts.

Here's a link to a good short article on bankruptcy and srudent loans

http://www.money-zine.com/Financial-Planning/College-Loan/Student-Loan-Bankruptcy-Options/

[DoctorDeth709]

ask your bankruptcy lawyer if what they are doing is allowed and if there is anything you can do

[CharisP500]

Since your debt to your college was not a student loan, Steve D's answer is not really helpful. I am going to take you at your word that the $750 debt to the college was discharged which would be consistent with federal court rulings that under certain circumstances student debt to colleges for unpaid tuition does not constitute an educational loan or an educational benefit overpayment, and may be discharged in a Chapter 7 bankruptcy.

Your $750 debt to the college however would probably be deemed to be a contractual obligation, which would make your failure to pay the debt a breach of your contract with the college. A discharge of debt would not affect the breach of contract, only the college's ability to collect damages on it. So while the college may not be able to collect the $750 debt from you, it may also no longer to be obligated to fulfill its contractual obligations to you, which would include releasing your transcripts.

Whether that argument would stand up in court depends on a number of facts but if you choose to litigate it would most likely cost you more than $750 in legal fees to pursue a successful claim.