John owes $5,000 to his Credit Union, $10,000 to Ford Motor Finance, $7,500 to Bank Credit...

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John owes $5,000 to his Credit Union, $10,000 to Ford Motor Finance, $7,500 to Bank Credit Card, and $100,000 to a hospital for a recent surgery. He has $8,000 in the bank, a car and no other assets. John decides to clear up his finances and move on with his life so he returns his car to Ford Motor Finance, pays off his loan to the Credit Union and then immediately hires an attorney and files a Chapter 7 bankruptcy. What is the likely result? Assuming Ford Motor Finance had a security interest in John's car. When John 1) returned the car he ended all obligation to Ford Motor Finance and in no case can Ford Motor ask for more money. 2) The Bank Credit Card will likely be paid in full as they are high on the priority list of unsecured creditors. The bankruptcy trustee will make the credit union pay the $5,000 back to the 3) bankruptcy estate and use it to pay all creditors: including the Credit Union on a pro- rata basis. 4) John cannot eliminate debt for medical expenses through bankruptcy. John owes $5,000 to his Credit Union, $10,000 to Ford Motor Finance, $7,500 to Bank Credit Card, and $100,000 to a hospital for a recent surgery. He has $8,000 in the bank, a car and no other assets. John decides to clear up his finances and move on with his life so he returns his car to Ford Motor Finance, pays off his loan to the Credit Union and then immediately hires an attorney and files a Chapter 7 bankruptcy. What is the likely result? Assuming Ford Motor Finance had a security interest in John's car. When John 1) returned the car he ended all obligation to Ford Motor Finance and in no case can Ford Motor ask for more money. 2) The Bank Credit Card will likely be paid in full as they are high on the priority list of unsecured creditors. The bankruptcy trustee will make the credit union pay the $5,000 back to the 3) bankruptcy estate and use it to pay all creditors: including the Credit Union on a pro- rata basis. 4) John cannot eliminate debt for medical expenses through bankruptcy. John owes $5,000 to his Credit Union, $10,000 to Ford Motor Finance, $7,500 to Bank Credit Card, and $100,000 to a hospital for a recent surgery. He has $8,000 in the bank, a car and no other assets. John decides to clear up his finances and move on with his life so he returns his car to Ford Motor Finance, pays off his loan to the Credit Union and then immediately hires an attorney and files a Chapter 7 bankruptcy. What is the likely result? Assuming Ford Motor Finance had a security interest in John's car. When John 1) returned the car he ended all obligation to Ford Motor Finance and in no case can Ford Motor ask for more money. 2) The Bank Credit Card will likely be paid in full as they are high on the priority list of unsecured creditors. The bankruptcy trustee will make the credit union pay the $5,000 back to the 3) bankruptcy estate and use it to pay all creditors: including the Credit Union on a pro- rata basis. 4) John cannot eliminate debt for medical expenses through bankruptcy. John owes $5,000 to his Credit Union, $10,000 to Ford Motor Finance, $7,500 to Bank Credit Card, and $100,000 to a hospital for a recent surgery. He has $8,000 in the bank, a car and no other assets. John decides to clear up his finances and move on with his life so he returns his car to Ford Motor Finance, pays off his loan to the Credit Union and then immediately hires an attorney and files a Chapter 7 bankruptcy. What is the likely result? Assuming Ford Motor Finance had a security interest in John's car. When John 1) returned the car he ended all obligation to Ford Motor Finance and in no case can Ford Motor ask for more money. 2) The Bank Credit Card will likely be paid in full as they are high on the priority list of unsecured creditors. The bankruptcy trustee will make the credit union pay the $5,000 back to the 3) bankruptcy estate and use it to pay all creditors: including the Credit Union on a pro- rata basis. 4) John cannot eliminate debt for medical expenses through bankruptcy.

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