Bankruptcy

Law School Teaches Bankruptcy, Then Files Bankruptcy

By Scott Riddle

From the Wall Street Journal Legal Blog:

Many believe that, some time ago, legal education in the United States arrived at a sorry junction, where it’s been stuck ever since. Schools proliferating without regard to the job market, churning out debt-strapped students with limited ability to repay loans...   We were reminded of all of these takes today when reading, once again, about the American Justice School of Law (recently renamed the Barkley School of Law, and formed as a new entity). On Tuesday, reports the NLJ, the for-profit Paducah, Kentucky-based law school filed for bankruptcy in the U.S. Bankruptcy Court for the Western District of Kentucky, listing its assets at $1.6 million and its debts at $5.2 million... 

Dean Larry Putt tells the NLJ that, while the bankruptcy filing puts a dark cloud over the Barkley School of Law, it will not have a direct impact on the school, since, technically speaking, it is a separate entity from the The American Justice School of Law. “Even as I speak, we are building the school up and moving forward,” Putt said. Though the NLJ notes Barkley could potentially face problems with its facilities and buildings, which are still owned by the American Justice School of Law and could be sold off to pay creditors.

Full post as published by Georgia Bankruptcy Blog on September 26, 2008 (boomark / email).