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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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Would an unpaid tuition balance for the upcoming Fall 2011

Resolved Question:

Would an unpaid tuition balance for the upcoming Fall 2011 semester, (already billed, and owed) be dischargeable under chapter 7? I have not signed a promissory note, and am not expecting any financial aid. It is just sitting there as an amount owed.

Can I expect any adverse repercussions from the school?

(I live in the 10th circuit). The tuition is not past the refund date, when I can withdraw to receive a refund in full.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

Did you already pay part of the tuition? (You said you "can withdraw to receive a refund in full.")

Customer: replied 5 years ago.
Hi, I have not paid any of the tuition. If I dropped the courses, the class fee would be refunded back to the billing statement. Ie the schools "account" for me. I am just curious as to whether i need to include this on the list of creditors. My parents passed away when I was 17, I am now 24 and have lots of debt as a result of supporting myself. I am committed to paying off my student loan debt, but the rest is too much to handle.

Second part:
I attend 2 schools, and live at one of them. The school above is not the one i live at.
I am living in a residence hall, does this constitute a household size of one? I am not sure if the 10th circuit uses heads on beds or some other method of determination.

All my expenses at the second school are paid via stafford loans (living, tuition etc), how do I itemize them on the financial situation? I know loans aren't considered income, but how do I justify my living? I basically don't have a job since I am in school 18 credit hours. Will this make the discharge a faster process? No income, no assets (1 computer and some clothes).

Thanks
Expert:  cfortunato replied 5 years ago.
1) If you cancel your class(es), so that you no longer owe money for tuition, you do not have to include the school in the list of creditors.
2) Whether or not you will have repercussions from the school depends on your school's policies, but if you cancel within the allowable cancellation period (which is usually before the start of class for a full refund), you should not have a problem. If you do not cancel in time to get a full refund, the tuition you owe can be discharged in a Bankruptcy.
3) If you live in a residence hall, you have a household of one.
4) You would indicate on the Bankruptcy paperwork that you have no income. When asked how you support yourself, you would explain about the loans.

I think this is what you wanted to know. If not, please let me know.
Thank you!
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