Refund of Tuition

[jacare]

What is the name of your state? MD

I paid for some training from a technical school in California, which I never went to. I cancelled my training and asked for a refund. They said they could not pay me in full, so we worked out a contract (I have all the emails). They paid me some money, but they didn't have the money to pay the rest, so we renegotiated a new agreement for a longer period of time with all the interest. Well, the check they sent me bounced and I subsequently received a letter they weren't going to pay me any more money and their attorney would contact me (which hasn't happened) to work out a new schedule. Furthermore, they will seek reorganization protection under Chapter 11 of the bankruptcy laws of California if they don't get full cooperation. I don't want to negotiate anymore, I just want to sue, which is my last resort.

My questions are:
If I sue them and win before they file bankruptcy, do they still have to pay me the full amount plus interest? (especially if they can just use the tuition for just one new student)

And if they do file bankruptcy, will I be first in line to receive my money (since I am the lowest risk) and how long will it take?

Basically, how can I receive the most amount of money in the shortest period of time? I am the only person they owe a refund too and they told me they owe mostly vendors money.

 

[JETX]

"If I sue them and win before they file bankruptcy, do they still have to pay me the full amount plus interest?"
*** No. The act of filing bankruptcy would put an automatic stay (stop) to any creditor claims, including yours. Then, if the court grants their petition and discharges the debt, yours would be included in any payment plan (chapter 11).

"And if they do file bankruptcy, will I be first in line to receive my money (since I am the lowest risk) and how long will it take?"
*** Again, no. You will be no better or worse than any other unsecured creditor. And depending on their filing, you might get some money in as much as three years.

"Basically, how can I receive the most amount of money in the shortest period of time? I am the only person they owe a refund too and they told me they owe mostly vendors money."
*** I would suggest filing a small claims action (if within limits). The worse that can happen is they would file bankruptcy, which is what they may do anyway. At least with a judgment you MIGHT get something from them.

 

[jacare]

It is not within the limits. There is $7000 plus interest involved here. That is why I am so concerned.

 

[HomeGuru]

It is not within the limits. There is $7000 plus interest involved here. That is why I am so concerned.

**A: then file in Regular Claims Court.

 

[GREGLENAE]

Hope this helps

If you get a judgement before they file for bankruptcy won't have much of an impact because once they file for bankrupty you will then have to sue them in bankruptcy court to get your debt declared non-dischargeable. You can do all of this yourself and do not need to hire a lawyer since it would cost more to hire a lawyer than you have in the claim. It will be time consuming to get it all done. Plan on at least a year. If you are persistent and don't give up you will eventually win. They want and expect you to give up. Be a hound dog and keep at em'. Good luck.

 

[jacare]

Is there anyway I can sue just the owner of the school to pay this money personally since I did speak to him and he promised the money would be paid in full -- no exceptions. He specifically said if I had any more problems to contact him personally and he won't return any of my phone calls. That way I won't have to deal with his company going bankrupt. Will the court accept that claim? Remember, I live 3000 miles away from the school and I don't want to make too many trips from Maryland to California since I don't have that much personal leave accrued.

I feel railroaded because he has the money to pay me if fires most of his staff and sells some of his computer equipment (computers, routers, switches, servers, firewalls) which is like worth millions of dollars.

 

[JETX]

"Is there anyway I can sue just the owner of the school to pay this money personally since I did speak to him and he promised the money would be paid in full -- no exceptions. He specifically said if I had any more problems to contact him personally and he won't return any of my phone calls"
*** If you can show that the individual personally guaranteed repayment of the note in WRITING, then you could add him as a party to the suit. Otherwise, no.