On March 18, 2013, the Honorable Dwight H. Williams, Jr., held that Troy University willfully violated the automatic stay in a chapter 13 when they refused to release an official transcript to the debtor since she filed bankruptcy. 11 U.S.C. § 362(a)(6) prevents an entity from performing “any act to collect, assess, or recover a claim against the debtor that arose before the commencement of the case.” Troy University was found to have knowledge of the bankruptcy and the automatic stay when it refused to release the debtor’s transcripts. Judge Williams held that Troy violated the automatic stay because the only motive for Troy to withhold the transcript was to get the debtor to pay her pre-petition tuition.
Judge Williams held that a school could charge customary or requisite fees that are necessary to produce or create official transcripts.
If you are in an active bankruptcy and feel that a school has violated the automatic stay or your discharge by withholding a transcript from you until you paid tuition that was included in your bankruptcy, please call your local Bond & Botes attorney immediately to find out what remedies are available for you in your district.