‘After School’ Bankruptcy: Obtaining your Transcript

A surprisingly common scenario is as follows: You recently attended, and maybe even graduated from, a college or university that is now holding your transcript and other such official documents. Unfortunately, however, you have not been able to fulfill your financial obligation to that institution.



And because their records show that you have an outstanding tuition balance with them, they refuse to release those school records to you. You discuss payment arrangements with them in the hope that they'll release the transcripts upon the setting up of a payment plan, but are shocked to learn that they still won't release your records until the payment plan is fully completed, i.e. no transcript until every penny on your account is paid up.



Take heart - you're not alone. And what's more, the law is definitely on your side. In fact, this very problem has been litigated, and the results have hinged upon two key sections of the Bankruptcy Code. First, the "automatic stay" section:



11 USC § 362. Automatic stay



(a) Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of--



(1) the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title...



Interpreting this section of the bankruptcy code, courts have ruled that the withholding of academic transcripts (or other such official documents) is in principle no different than an action against the debtor to recover a debt that arose before the case was filed, and as such is prohibited, so long as the case is pending, by the automatic stay as outlined above.



Next, let's look at what the law holds after the discharge:



11 USC § 524. Effect of discharge



(a) A discharge in a case under this title--



(2) operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover or offset any such debt as a personal liability of the debtor, whether or not discharge of such debt is waived...



Interpreting this section, courts have likewise held that the withholding of school transcripts is in essence the same as an action to collect on a debt that, because it has been properly discharged, is subject to the injunction described in section 524.



In sum, filing a bankruptcy petition provides a viable answer to the transcript dilemma; that is, you needn't fear that by including the tuition debt in your petition, you are preventing yourself from ever being able to get your transcripts. Nor are you forced to suffer financial hardship in repaying that tuition debt before the school will release the records you need. Quite simply, the law forbids a school's refusal to release academic records, both during the bankruptcy and after discharge, when that refusal is because of an antecedent debt.



David Romito is an Attorney based in Pittsburgh, PA. He handles Chapter 7 Bankruptcy matters in the Western District of Pennsylvania. For more answers to your Chapter 7 Bankruptcy questions, please visit his website at Pittsburgh Bankruptcy Attorney