Suing a Bankrupt Education Institution

dealhunt on 21/07/2018 - 12:41
Last edited 21/07/2018 - 16:12 by 1 other user

Long story short, this private education institution shut down then the insurance and the government jumped in and nominated a financial institution which had to deal with all students' money and education related issues.
Time has gone, nearly 3 years since things went bad and I still see no money back nor any commitment so I'm done by dealing with them.
They owe $3,000 plus they should reimburse the government funded tuition fees.
My complaint (s) started long before the school bankrupted.

I think my actions now are: 1) sending them a final letter of demand; 2) if they don't comply, filing a complaint in the small claims tribunal.
Could anyone please advice?

Financial

Comments

Sofie519 on 21/07/2018 - 12:59

So your point of suing a bankrupt company is? …

Where are you positioned in your claim, have you contacted ASQA for their direction? I know of students in similar situations where the RTO shut down or had their registration revoked, and the students were transferred to other RTOs to complete their courses.

P.s. Government funded tuition - another multi-billion dollar blackhole where there is no accountability in how taxpayers money is being used, spent or recovered
- try2bhelpful on 21/07/2018 - 13:13
  
  +6
  
  The problem is outsourcing. The Government started to hand out money like it was confetti without a properly regulated market. For all the issues about TAFEs at least they were Government controlled and held to a standard; the outsourced education centres were ripping off both the Governments, and the students, and then folded when it all went pear shaped. Apparently now these people are lining up to work out how to rip off the NDIS system. For the love of God can Governments start actually being responsible for what falls under the purview of their Ministries instead of saying "nothing to do with me" once they outsource the issue.
  - Diji1 on 21/07/2018 - 13:46 Comment score below threshold.
    - try2bhelpful on 21/07/2018 - 13:50
      
      +1
      
      There is no viable alternative to voting for either party; everyone else is an outlier and the outliers have their own barrows to push. We need to hold the main parties responsible for what they are doing to the country. All we need is for one of the parties to crack and the other will come onboard.
    - dealhunt on 21/07/2018 - 13:51
      
      -1
      
      And I wish this thread doesn't become a political debate where everyone has their own opinions.
    - try2bhelpful on 21/07/2018 - 13:53
      
      @dealhunt: So what is your problem; that we are trying to deal with the underlying issues or that everyone has an opinion. We need more fences at the top of cliffs rather than ambulances at the bottom - and the ambulance here is decidely faulty.
    - dealhunt on 21/07/2018 - 14:10
      
      @try2bhelpful: Dude you should open your own thread and talk about anything you want.
      Please avoid posting off topic/non sense stuff here, I don't need your help.
    - try2bhelpful on 21/07/2018 - 17:47
      
      +2
      
      @dealhunt: Dude, if the Government had handled this properly in the first place you wouldn't have this problem.
    - try2bhelpful on 21/07/2018 - 18:27
      
      +3
      
      @dealhunt: I think you are the one being rude and, given I've managed to get two university degrees without getting myself into this sort of financial difficulty, and you are the one with the issue, I think you need to investigate what "uneducated" means. Seriously, dude, you need to chill out. With your attacks on people you will never get people onside to assist you.
    - dealhunt on 21/07/2018 - 18:51
      
      -6
      
      @try2bhelpful: Go away, you're being so so rude.
      I told you already, you wanna talk about politics or non sense then go open your own thread.
      I don't need your help.
      You got 2 degrees and you don't understand?
      See how tax payers' money got wasted?
      I don't need you, go away!
    - try2bhelpful on 21/07/2018 - 18:58
      
      +3
      
      @dealhunt: I really don't understand why you are fixating on one section of your thread. I'm sure other people are providing you with more than enough information - why don't you concentrate on that and ignore my comments rather than fixating on them. If you hadn't responded to my comments then I woud've stopped posting on this thread already. There is a reason why people like me did not end up in this type of mess previously and that is because the Government wasns't duck shoving their responsibility back then. Maybe whilst you are looking up "uneducated" you also need to look up "rude" because I'm not the one being personal here.
    - dealhunt on 21/07/2018 - 21:39
      
      -5
      
      @try2bhelpful: You still have not provided any useful information regarding a solution but non sense, from a multi laureate, obviously you got nothing better to do.
    - try2bhelpful on 21/07/2018 - 23:46
      
      +1
      
      @dealhunt: again with the rudeness based on personal attacks. I look at the larger picture with other people who read your post, others have provided you with the specific advice. You may want to enlarge your world view when you approach employment; attacking other people does not engender cooperation. Yes I am a multi laureate because I used my intelligence and scoped out my options. It allowed me to develop a successful career. Best of luck and Bye Bye.
    - HighAndDry on 23/07/2018 - 19:04
      
      @try2bhelpful:
      
      We need more fences at the top of cliffs rather than ambulances at the bottom
      
      That's an amazing saying. Definitely stealing it to use myself, thanks!
- dealhunt on 21/07/2018 - 13:20
  
  I couldn't explain everything in the title so the education (scammers) institution bankrupted then a financial institution was nominated which is responsible to deal with students' claims.
  I'm looking for money reimbursement and from my understanding I'm positioned no where in the claim as the financial institution (we know they never pay) is just diverting me around.
  
  And regarding the government funded tuition yes that is a massive waste of tax payers' money as the government only give the money away without caring if the students will have a future.
holdenmg on 21/07/2018 - 13:46

+2

When you went and saw your Federal MP, what did they advise?
- dealhunt on 21/07/2018 - 13:49
  
  +1
  
  I didn't see anyone also I've bad experience in the past by writing letters for other things and getting a non sense replay 6 months later.
  These are the people we must vote for!
Almost Banned on 21/07/2018 - 14:14

+4

In short, you cannot sue a company in liquidation without leave of the Court (I am assuming this is the actual situation).
Good luck.
Put your proof of debt in with the liquidator and go to the creditors'meetings.
- dealhunt on 21/07/2018 - 14:21
  
  So do you mean I send a letter of demand, they should respond within a time frame and if they fail, then I can apply to the Court?
  I've no idea where and when has been any creditor meetings as I never had any notice of it, in my opinion the liquidator had a duty to inform me.
  - HighAndDry on 23/07/2018 - 19:06
    
    Nope. You send a letter of demand, they tell you they're bankrupt, good luck. You go apply to Court and the Court asks you what's so special about your debt. (Hint: Nothing). Court tells you to join the line.
[Deactivated] on 21/07/2018 - 15:17

+7

Even if somehow you are miraculously able to get a hearing and an order to reimburse your $3k, you may never be paid. Your time costs and effort is not going to be worth the unlikely outcome of $3k.

This is as close to literally beating a dead horse as it gets.
Baysew on 21/07/2018 - 15:33

+2

How come they owe you $3000. Didn't the Government pay these fees for 'private' education?
- dealhunt on 21/07/2018 - 15:45
  
  Good question, they "pinched" $3,000 out of pocket fees which is one of the point in my complaints.
  - Baysew on 21/07/2018 - 16:05
    
    +2
    
    Well could you explain what you paid for and what you didn't get. The $3,000 is the only point of your complaint. (the Government will fight their own battle for fees)
    
    As others have indicated, a letter of demand/small claims is not going to help you. If the company is in receivership and you believe you are owed money, then the onus is on you to lodge a 'proof of debt'.
    
    In order to help you here, you need to be specific.
    
    You may need to prepare for the fact that you won't get your money back. The whole reason a company goes into liquidation is that their liabilities exceed their assets. You are an unsecured creditor, behind the ATO, employees, secured creditors and the liquidator.
    - dealhunt on 21/07/2018 - 16:29
      
      1) I need to tell the government that these scammers have to return the money as I'm not able to enroll in other institutions, so far I tried all I could but in vain, I'm being diverted and no one has a clear idea, all the people who answer the phone don't know anything unless I've the exact magic word.
      2) A proof of credit should be attached to the letter of demand?
      3) The company (the education institute) went in liquidation but now there is this financial institution which was nominated by the government and as far as I know they are still alive, just they act like typical insurance companies.
      
      Could you please create a Google link with the key words where I could search further?
      I don't know what information you would need and in what I should be specific but this is the story.
    - jhmtaylor on 22/07/2018 - 09:48
      
      +2
      
      @dealhunt: I have no idea what you are trying to explain. What has the new education institution got to do with insurance?
    - HighAndDry on 23/07/2018 - 19:08
      
      +1
      
      @dealhunt:
      
      Okay? The Govt already knows. There was a crackdown a while back.
      
      Proof of debt. You forward that to the liquidator (the "financial company" you keep talking about). There's no letter of demand, that's dead end.
      
      Financial institution is the liquidator. The educational institution is being picked apart for viable assets by the liquidator (liquidated) to pay back some of what it owes.
      
      As others have said, very low chance you'll get anything.
HeWhoKnows on 22/07/2018 - 11:31

+2

Best advice : dont waste your time.
Your money and the institution have GONE!
Love a bargain on 22/07/2018 - 13:32
I assume the "financial institution which had to deal with all students' money and education related issues" is the liquidator. However, that's not relevant to the comments below.

You should have filed your proof of claim with the liquidator when it first went bankrupted. Once you've done that, there's nothing else you can do but to wait (and has the right to attend creditors' meeting and receive periodic reports from the liquidator).

Your claim of $3,000 (if substantiated) is likely to be unsecured (unless it's somehow considered money held on trust, etc.) and rank in the bottom of the pecking order if the bankrupted company has anything to pay back to its creditors. So you'd be lucky if you receive anything back.
Ozpit on 22/07/2018 - 18:27

+1

The moral of the story is to not enrol in start-up RTOs because they fall over faster than skittles in a bowling alley. They are big on marketing and too often short on delivery. State governments have a lot to answer for in promoting these organisations and then running for cover when they fail. Only enrol in RTOs/TAFEs that have been around for a long time and have a solid track record of delivering courses that are proven to lead to employment.

Suing a Bankrupt Education Institution

Comments

New Forum Topics