In Williams v. Drexel University, the Eastern District Court of Pennsylvania ruled that a university could be in violation of the automatic stay by withholding school transcripts of a former student in an active bankruptcy. The student was close to completing a Drexel master’s program when she fell behind on tuition during the COVID period, was locked out of student systems, and later filed Chapter 13. She sued the school over its actions, arguing that the school was trying to coerce and pressure her into paying past due tuition.

If you are considering filing for bankruptcy relief, don’t forget to consider unpaid tuition to any colleges or universities you attended. If they are withholding transcripts, the bankruptcy case can be helpful in getting this transcripts released. Be careful, however, because past due tuition is very different than student loans, which are generally non-dischargeable in bankruptcy.