Home      Login

Abstract: 

Every generation of parents hopes that their children will have a better life than they themselves have had, and parents often stretch their budgets to pay for their children’s college tuition. Problems arise, however, when parents have paid college tuition for their children despite their inability to meet other financial obligations. This article explains the applicable federal and state law, and reviews important cases in which courts have ruled in decisions that have favored creditors as well as debtors over questions of whether tuition payments made by parents in financial distress were allowable under law, or fraudulent transfers subject to revocation by the schools who received the payments.

Keywords: 11 U.S. Code Section 548(a)(1); Fraudulent Transfers; fraudulent-conveyance statutes

Affiliations:  1: Editor; 2: Editor.