<h2>New Jersey Attorney Explains How Bankruptcy Can Force A College To Forward Transcripts to Another University. </h2>
Immediately upon the filing of any bankruptcy case, in New Jersey, the Automatic Stay Provision of the bankruptcy code, 11 U.S.C., § 362(a) is effective. The Automatic Stay prevents a creditor from commencing or pursuing any action against the bankruptcy debtor, as a result of debt owed to the creditor. Typically, this provision prevents a creditor from suing the debtor for a debt that is owed. The Automatic Stay stops the collection action no matter the status. If the bankruptcy case is filed after the creditor has obtained a wage garnishment, the garnishment must be released.
There are circumstances in which a college student owes funds to a university in which he no longer attends. The university may restrict the release of the transcripts to a college that the debtor has applied and to the debtor directly. In general, this tactic is legal and very effective in collecting the funds, as the student will have wasted substantial time and money, unless the debt is paid.
However, the bankruptcy Automatic Stay provision requires the college to release any and all transcripts to the debtor, directly, and/or any colleges that the debtor has applied. Of course, the debtor will not receive any special treatment and will be required to pay any typical administrative fees for the request. Any intentional refusal to comply with the release of the transcripts may subject the institution to sanctions, In other words, if the college fails to comply, the debtor’s attorney may file a request with the bankruptcy court demanding compliance, with a request for punitive damages, attorney’s fees and costs.
After the discharge of the successful completion of the bankruptcy case, when the debtor is no longer in bankruptcy, the college must continue to comply with the debtor’s request to release the transcripts. The College’s failure to comply with the debtor’s request to release the transcripts after discharge, results in the violation of bankruptcy code section 11 U.S.C., § 524(a). 11 U.S.C., § 524(a) operates as an injunction against such action. If the college intentionally fails to comply after the discharge, the debtor may wish to reinstate the bankruptcy case demanding compliance, with a request for sanctions, as previously explained.
You may contact Robert Manchel, at 866 503 5644, to discuss how bankruptcy will provide you with debt relief.