Judge Court
Eastern District of New York
Tuition Payments by Insolvent Parents (Likely) Constitute Fraudulent Transfers
District judge in Brooklyn overturns the bankruptcy court and again exposes colleges and universities to the receipt of fraudulent transfers when insolvent parents pay their childrens’ tuition.
Structured Finance Protects Tuition Payments from Fraudulent Transfer Suits
Children were the initial transferees of tuition payments, thus giving schools the ‘good faith’ defense to fraudulent transfers.
Lower Courts Split on Nondischargeability of Education-Related Loans
New York judges narrowly define ‘educational benefit’ to discharge student loans.