Regarding a possible “academic bankruptcy program,” some colleges have done this in the past for individual students, despite what the university guidebook may say. It may be a formal policy at some colleges and applied on a case-by-case basis at other schools. I know of a student at a very elite university whom was allowed to repeat an entire semester (he/she had failed every class). Word was that he/she threatened litigation and thus the school permitted the student to repeat the semester at no cost. I think the fact that the student was an athlete and this particular school had (still has) a high profile athletic department, was one reason why that particular resolution occurred.