Whiting, NJ Bankruptcy Law Firms & Lawyers

When you have an account with a credit union, you usually have to pledge all the money you have in any accounts with them as collateral for any loans you take out with the credit union. Therefore, if they repossess your vehicle and sell it and there is a balance left on the loan, they can apply the money in your accounts to that balance.

It makes a difference whether you owed tuition to your college, which is dischargeable in bankruptcy, or whether you owed a student loan, which is rarely dischargeable. If it was tuition that you owed, the college is violating the discharge injunction by not providing your transcripts. You should speak to your attorney about seeking relief, and sanctions, under Code 524. However, if it is a student loan that you owed things are somewhat murky, as some courts hold that since the student loan is not dischargeable in bankruptcy the college is free to withhold the transcript. The cornerstone of this reasoning is that a college cannot violate the discharge injunction if the underlying debt is not discharged. There is some common sense appeal to this argument. I am aware of no clear cut law on the issue of withholding college transcripts after a Chapter 7 case where the student loan was not discharged.