Monday, 4 July 2016

'After School' Bankruptcy - Obtaining Your Transcript

There is a surprisingly common situation as follows: You possibly even graduated from, university or a college that's now keeping your log and other such official documents, and joined. Unfortunately you've not been able to fulfill your financial accountability to that institution.

And since their records show that you've a superb tuition balance together, they will not release these college records to you.

Take heart - you are not alone. And what is more, the law is definitely on your side. In fact, this very issue continues to be litigated, along with the benefits have hinged upon two important parts of the Bankruptcy Code.

11 USC § 362. Automatic stay

(1) the graduation or continuation, like the issuance or work of procedure, of a judicial, administrative, or other activity or proceeding from the person which was or could have been started prior to the commencement of the case under this title, or to recover a claim against the consumer that arose prior to the beginning of the event under this title...

Interpreting this part of the bankruptcy code, courts have ruled the withholding of academic transcripts (or other such formal documents) is in principle no different than an action against the consumer to recoup a debt that arose prior to the situation was recorded, and thus is prohibited, provided that the situation is imminent, from the automatic stay as outlined above.

Next, let's look at exactly what the legislation holds following the discharge:

11 USC § 524. Effect of discharge

(a) A discharge in an instance under this title--

(2) operates as an injunction against the beginning or extension of an activity, the work of process, or an act, to get, recover or offset any such debt as a personal obligation of the person, if discharge of such debt is waived...

Interpreting this section, courts have similarly held that the withholding of university transcripts is in essence the same as an action to get on the debt that, because it continues to Academic Transcription be properly discharged, is susceptible to the injunction described in section 524.

In sum, processing a bankruptcy petition provides a practical response to the log issue; that is, you neednot worry that by including the tuition debt in your application, you're preventing yourself from ever having the ability to get your transcripts. Nor have you been required to experie
nce economic difficulty in repaying that tuition debt ahead of the school can release the files you'll need. Quite simply, the law prohibits a college's refusal to produce educational records, both during the bankruptcy and after release, when that refusal could be because of an antecedent debt.

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