Career Point College Gets a Federal Bankruptcy Court Hearing

by San Antonio Attorney

Career Point College, a for-profit school in San Antonio, Texas, was able to get its day in a federal bankruptcy court.  Many former employees and students came to the court expecting to hear information regarding the money they assert the school should pay them back.

The court made a decision that a federal bankruptcy trustee is going to be assigned to liquidate the assets of the school’s operator, Dickinson of San Antonio, Inc.  Legal representatives of 40 students that are making claims said their clients are unlikely to get any money from this company, but they there are two other cases filed in state court that could give the money that the students and employees are pursuing.

Career Point closed in October 2016 after a probe into three school employees who had purportedly broke the regulations governing student aid funds.

One student was greatly disappointed because many of them suspended their lives to get an education to improve themselves.  The students were told via email that they can no longer go to the school, the student said.

Attorney Tom Rice, who represents the former students, said at hearing that it may take a year to decide who is going to get any money by out of the other cases in the state court.

Rice said that the Chapter 11 case was converted to Chapter 7 because the school has no more business to remain open.  A bankruptcy trustee is appointed to liquidate all the assets and pay creditors according to the bankruptcy code, rice said.

Former students and employees of Career Point have been greatly affected by the closure of the school.

One of the former instructor said she has been devastated for that past six weeks.

Students and employees of Career Point are involved in two more cases that have yet to go to court.

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