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Tuition Refund Collection - Non Proft private school Other Debt

Discussion in 'Other Debt, Collection, Garnishment' started by Guest, Dec 2, 2013.

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  1. Guest

    Guest Law Topic Starter Guest

    My daughter is enrolled with a nonprofit private school(Montessori) this year, and all parents have received a sudden email before Thanksgiving stating the school was going to close in 3 days due to the financial situation. All 30+ kids will need to identify a replacement school in short time. There's no financial arrangement about the tuition refund and a few of families including us have paid for the full year and after school care (e.g.$12k).

    The chair of the board has full/and only control of financials. She mentioned the deficit for the current school year is large, a result of using approximately half of this school year's revenue to pay the bills from last school year. However, the info. was not disclosed at all to parents at the application stage. The school has not filed tax filing for 3 years since 2010.

    The school is exploring bankruptcy or dissolution right now,and they're trying to expedite the liquidation of assets to pay back the money, given the order of liabilities: staff salaries, rent, tuition reimbursements, we could probably only get pennies back for dollars.

    My question is if we could possibly get the tuition back from the school/or board of the chair if we take legal route? Any input is greatly appreciated.
  2. Betty3

    Betty3 Super Moderator

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    If the school files for bankruptcy, you probably will get back only what might be available for reimbursement. You will need to file a claim. There is only going to be so much money to go around.

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