In re Parkman, Bankruptcy No. 82 B 12344.
| Decision Date | 09 February 1983 |
| Docket Number | Bankruptcy No. 82 B 12344. |
| Citation | 27 BR 460 |
| Parties | In re Catherine PARKMAN, Debtor. |
| Court | U.S. Bankruptcy Court — Northern District of Illinois |
Bennie W. Fernandez, Oak Park, Ill., for debtor.
Thomas F. Panza, Fort Lauderdale, Fla., for creditor.
This matter coming on to be heard upon the motion for rule to show cause of the Debtor, Catherine Parkman, Debtor, represented by Bennie W. Fernandez, Attorney at Law, against the Creditor, Nova University, Nova represented by Thomas F. Panza, Attorney at Law, and,
The Court having examined the pleadings filed in this matter, having heard the arguments of counsel and the Court being fully advised in the premises;
The Court Finds:
1. On September 15, 1982, the Debtor filed the instant petition under Chapter 13 of the Bankruptcy Code, and listed Nova on the Schedules, as follows:
Nova University $3,850.00
Comptroller
3301 College Avenue Special Class
Ft. Lauderdale, Fla. 33314
Remarks: Pay 100%
On September 15, 1982, the Debtor was enrolled in a doctorate program at Nova University's Illinois branch located in Elk Grove Village, Illinois. Under the Debtor's plan, the tuition arrearage of $3,850.00 is to be paid in full over a 36-month period.
2. During the latter portion of September, 1982, the Debtor paid Nova the sum of $600.00 for the October through December, 1982 term. The total sum of $740.00 was due for said term on December 1, 1982, and the Debtor continued to attend classes during the month of October.
3. By letters dated October 26, 1982 and November 5, 1982, the Debtor was informed that she would not be allowed to attend classes until complete payment was made, including the sum of $3,850.00 in arrearages scheduled under the Chapter 13 plan and petition. In the letter dated October 26, 1982, it is stated in relevant part, as follows:
This permission to attend the workshop, of course, is contingent upon your paying all back tuition due by November 30, 1983. I understand as of last week this amount was $3,250. This will have to be completely cleared prior to your attending Unit 3.4 or Sequence A.
In the letter dated November 5, 1982, it is stated in relevant part, as follows:
On December 1, 1982, the Debtor filed the instant motion for a rule to show cause, and this Court entered and continued said motion for argument to December 29, 1982. On December 29, 1982, after argument, the parties were given leave to file proposed findings of fact and conclusions of law.
The Court Concludes and Further Finds:
1. The Debtor asserts in her motion and memorandum that the action taken by Nova, a private educational institution, is an act to collect indebtedness after filing of the Chapter 13 and violative of the automatic stay provision of Section 362(a) of the Bankruptcy Code. Section 362(a) of the Bankruptcy Code details eight forms of collection prohibited upon filing of bankruptcy. Particularly relevant to the instant case is Section 362(a)(6) which provides, as follows:
2. From the above detailed language of the letters and statutory provisions, it is clear that Nova's refusal to allow the Debtor to attend classes is an action to collect indebtedness after bankruptcy, within the purview and meaning of Section 362(a)(6) of the Code. In re Lanford, 7 BCD 485, 486, 10 B.R. 132 (D.Minn.1981); In re Ware, 7 BCD 373, 374, 9 B.R. 24 (W.D.Mo.1981). Our own Seventh Circuit Court of Appeals has ruled that creditors seeking relief from the automatic stay provisions must file an adversary proceeding. In re Holtkamp, 669 F.2d 505, 509 (7th Cir.1982).
3. Under Section 525 of the Bankruptcy Code, public entities are prohibited from taking actions...
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