Johnson & Wales University is fighting to keep $46,909 in tuition paid by a Connecticut couple for their daughter’s education against the demands of a bankruptcy trustee, who sued to get that money back, the Wall Street Journal reported today. The private, Rhode Island-based college has asked a bankruptcy judge to throw out the lawsuit that arose when Robert and Jean DeMauro filed for bankruptcy last year. A bankruptcy trustee who examined the DeMauros’ finances argued that the couple didn’t get any benefit from the tuition payments made from March 2011 to December 2013 — their daughter did. The bankruptcy trustee’s lawsuit, filed on April 8, is the latest courtroom battle to unfold over the controversial new lawsuits. Those suits argue that parents who paid tuition for their children before filing for bankruptcy should have used that money to pay down their own growing debts. Read more. (Subscription required.)
An article in the July ABI Journal examined the issue of trustee clawback lawsuits by parents for college tuition. Click here to read more.
