ITT Educational Services’ Bankruptcy Involves a Huge Amount of Paper

by San Antonio Attorney

Since ITT Educational Services filed for bankruptcy, multiple pallets have been transported weekly into the warehouse located near the south side of downtown Indianapolis.

Most of the wooden pallets stacked contain 20-30 files from each for-profit college campuses in the United States.  The pallets include sensitive data such as transcript of records, loan information and even Social Security Numbers.  This raised the concern whether the documents can be accessed after the bankruptcy filing.

In just 14 days, ITT was reduced to five workers from its vast roster of 8,000 employees prior to its bankruptcy filing.

ITT filed for Chapter 7 bankruptcy last September through the U.S.  Bankruptcy Court for the Southern District of Indiana.  The liquidation process started when the Department of Education reduced the federal aid by preventing ITT from accepting students with pending loans.

Deborah Caruso was the appointed trustee of the educational institution’s liquidation process.  Caruso had to hire her team to go through school buildings to gather evidence needed.

Caruso said that ITT’s facilities such as computers and fixtures were still intact.  However, the main issue was the location of the student records in each location.  Organizing all the business and academic records can take up to a year.

Under Caruso’s supervision, the task was slowly completed in weeks.  Caruso added that she wanted the records to be transferred right away in fear that the documents might be tampered by the building owners.

Any remaining amount of money left on the ITT account was used for logistics and maintenance of school property.

ITT’s total assets and liabilities amount to $100 million to $500 million, according to the bankruptcy petition.  This may not be accurate as the estimate was done by ITT employees.  Another problem affecting the estimated cost of assets and liabilities are bounced checks that were issued to students and employees.

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