AT LEAST THE COLLEGE TUITION IS PAID…OR IS IT?

tuitionThis is a common scenario in this economy. Parents struggling to make ends meet,  try to make sure to pay their children’s college tuition first,  so their kid gets a good education.    Parents then have to choose what to pay next and sometimes,  have to let the rest of the bills take a back seat.   They end up amassing huge credit card debt and/or second mortgaging their home, losing the equity.  And sadly, when things get badly out of control,  the parents might have to file for bankruptcy.   Even though the tuition has long been paid to the university, and the student /child has graduated and received diploma, the bankruptcy trustee can sue the university to return funds to the bankruptcy estate to be paid and  distributed to other creditors.  While this is a very new trending strategy by the bankruptcy trustees, the law is not new and it has not been uniformly applied.   A Bankruptcy Judge will shortly decide this issue in Massachusetts.   See this link :    http://on.wsj.com/20U3ulG  , an article in the Wall Street Journal with regards to current colleges being made to pay back college tuition to the bankruptcy estates.   There is so much to know and consider leading up to the years filing bankruptcy.      Gogel & Gogel law firm, has expertise for 30 years in this area.    Should you have any questions about this post or Bankruptcy issues, call Gogel and Gogel or  CONTACT us on our website www.gogel-gogel.com