Schools Suffer When Debtor Tuition Payments Are Recovered

By Michael Cook and James Bentley (December 20, 2018, 11:54 AM EST) -- Two courts have added to the murky case law addressing a bankruptcy trustee's ability to recover a debtor's tuition payments for their children. In Geltzer v. Oberlin College, et al.,[1] a New York bankruptcy judge permitted a trustee to claw back payments that parents made to their financially independent adult children for college-related costs. In Pergament v. Brooklyn Law School, et al.,[2] a district court held that schools may assert a "good faith" defense for tuition payments received before the student enrolls in classes but not those payments received after the student has enrolled....

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