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In re Green

United States Bankruptcy Court for the Eastern District of North Carolina
2011 WL 5902502 (2011)


Green (plaintiff) attended East Carolina University (ECU) (defendant) and received a Federal Perkins loan. Green also received an overpayment of financial aid from the North Carolina Department of Health and Human Services’ Division of Services for the Blind (Division). These loans were managed by ECU’s Office of Student Loans. Green became liable to ECU for the entire overpayment because ECU repaid the Division for the full amount of the overpayment. After Green filed for Chapter 7 bankruptcy under the United States Bankruptcy Code (Bankruptcy Code), he continued to attend ECU and then withdrew. Green’s withdrawal forced ECU to again return his financial aid to the third-party financial-aid providers. ECU billed Green for both the overpayment and the returned financial aid. Green filed a motion for sanctions against ECU, claiming that ECU’s Office of Student Loans had attempted to collect on his prepetition debt through four letters and invoices after receiving notice of the filed bankruptcy petition. ECU contended that the letters and invoices were unintentional because they resulted from a lack of communication between different ECU departments and were part of an automatic process.

Rule of Law


Holding and Reasoning (Doub, J.)

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