Fayetteville Policies and Procedures 303.0
Bankruptcy
The General Counsel Office of the University of Arkansas, Fayetteville, processes all UAF claims against companies, organizations or individuals filing for bankruptcy. Departments are responsible for routing all bankruptcy-related correspondence to the General Counsel Office immediately after receipt. The University's response time may be limited by a court-imposed deadline.
Notice of Petition to File Bankruptcy
The Notice of Petition to File Bankruptcy is notification to the University that a
person or organization has filed a petition for bankruptcy.
The Notice of Petition occurs prior to a person or organization actually being granted
a discharge of bankruptcy and is an information gathering procedure designed to provide
the courts with the documentation needed to complete the bankruptcy proceedings.
General Counsel responds to this notice by contacting all involved UAF departments to
determine the total amount owed the University and then filing a claim with the cognizant
court. UAF departments should respond immediately to information requests from the
General Counsel Office even when money is not owed the department.
Receiving the Notice of Petition to File Bankruptcy requires the University of Arkansas
to cease collection efforts on the person or organization, however, this does not
mean that the debt is forgiven or dismissed.
Notice of Discharge of Bankruptcy
The Notice of Discharge of Bankruptcy informs the University of the disposition of
the court proceedings.
The University of Arkansas will continue to reflect the debt on their books until
it is determined that the debt is no longer considered collectible.
Any new charges for student enrollment or University services must be paid in full
in advance.
The Associate Vice Chancellor for Financial Affairs makes a determination of what
is collectible and in turn notifies the involved departments. Any recovered funds
are directed to the appropriate accounts.
The Director of the Arkansas Department of Finance and Administration authorizes the abatement
of the discharged balance of the bankruptcy.
Reformatted for Web May 13, 2014
Revised January, 1999
December, 1997