If a school files for bankruptcy, it can no longer accept federal financial aid. Period. It cannot rebrand or sell and accept federal funding in the firm of FA. So, if CCI files for bankruptcy, that's the end. It will close. And probably rather quickly. That's very likely why they have not yet filed.
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Chapter 7 means that they are making deals with creditors before they shut the doors. It's a plan to shut it down.
"Section 102 (a) of the HEA (Higher Education Act) specifically provides that an institution that has filed for bankruptcy is not an eligible institution for purposes of participating in financial assistance programs authorized by Title IV or the HEA."
Chapter 7 will shut them down CCI is not a Chapter 11 candidate
Can never steal taxpayer money again? Sounds like the perfect fix!
Everyone keeps throwing around bankruptcy like it's the fix and it'll happen and we will all go back to normal. But, while a regular business can do that, a school reliant in federal funding can't.