Question it is the bankruptcy question ASKED: how much money is left for unsecured debt. Also, list
Question:
Question it is the bankruptcy question
ASKED: how much money is left for unsecured debt. Also, list the debt that is unsecured one by one
Peter was the child of German immigrants, and at one time had a thriving business reselling Leonard Cohen songs. He was the sole owner of "That's no way to say - Good Buy records". However, he invested in records just when records were on the decline, and the business was now barely profitable.
The separation from Bernie was expensive, and all matters were resolved with a lump sum spousal support award of $50,000, plus the court awarded $8000.00 in court costs to Bernie, because the Judge was pissed at Peter for being such a moron.
Peter decided to get a second job to try to recover some of his losses and save his business. He was hired and paid $10,000.00 to record a song for Maureen Aoife N, a well-known songwriter. He quickly spent the money and thinking that his fortunes had changed, also bought 50 cuban cigars at a value of $1000.00 each, that he had shipped to his business. The cigars were to be paid for in 30 days, and Peter thought he would have lots of money by then. When the cigars arrived, Peter did not even unpack them, choosing to save them for a rainy day.
However, when he tried to record the song, he simply could not get the pitch right. It sounded awful. So he told Maureen "I cannot sing your song! It is too difficult for me. I am German! You would have to be from county Tyrone in Ireland to hit this right!" Maureen demanded the return of the money she had given Peter. Peter told her that he could not pay. Maureen petitioned Peter into bankruptcy two weeks after they had met.
In addition to the assets and debts listed above, the Trustee took:
1. Peter's collection of Bob Dylan records, valued at $12,000.00. Although Peter protested that "You just can't mess with Dylan", the trustee took them anyways.
2. Peter's 2015 GMC pickup truck, valued at $35,000.00
3. Peter's half interest in the house, valued at $150,000.00
4. A rare original painting by Eugene Burnand worth $76,000.00, (that was a gift from Bernie).
5. An RRSP in the amount of $34,500.00
6. A pair of well worn white sunglasses, worth $0.20
Two mortgages were on Peter's share of the property. The first real property mortgage was $110,000.00. The second real property mortgage was for $30,000.00. In addition, there was a registered conditional sales agreement on the truck in the amount of $37,000.00 as it depreciated faster than Peter's payments. Peter also had a registered General Security Agreement in the amount of $10,000.00 that was for money he borrowed for a trip to Costa Rica.
In addition, just before the bankruptcy was filed, but after Bernie left, Peter's dog died, and he owed $4,000.00 for the dog's funeral expenses.
Peter missed his only opportunity to write his country song, although he finally had all the ingredients for one: lost love, dog died, and/or truck.
Other debts were the outstanding municipal taxes on the real property that had to be sold, with Peter's share being $3200.00. There was an outstanding workman's compensation award in the amount of $30,000.00 each to three employees that were injured when a hot record press malfunctioned causing a severe burn to the each employee's foot. One employee was burned so badly that they lost their whole heel. (how and why he had their feet in the press was never determined), He owed 8 months rent on his apartment in Paris, at a cost of 1000.00 per month. Paris, the only city in the world where starving to death is still considered an art. Peter also had a credit card bill in the amount of $10,200.00. The trustee submitted a bill in the amount of $41,200.20.
When the trustee attempted to seize the cigars, Peter protested and argued that they were bought by his business, and therefore should be exempt from his personal bankruptcy proceedings.
Faced with the likelihood of having to eat turnips (since Peter could not even think of oranges) for the rest of his life, Peter thought long and hard about the value of friendship. He knew that 'there were no second chances in life, except to feel remorse'. He remembered how Bernie used to love to hear his stories of growing up with his parents before they immigrated. He decided to send Bernie an email that read "Maybe when this is all over, you will send me an email and invite me by for coffee, sometime. In our time together, I never told you how we got out of Germany, many years ago. It's a good story."
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill