Kitty, a bookkeeper for Jabil Circuit, filed a petition in bankruptcy under Chapter 7, seeking to discharge $65,000 in credit-card debts and $45,000 in student loans. Kitty’s husband died and left her with two children, Daniel, who attended college, and Darius, who was 14 years old. According to Kitty, Darius was a star football player who practiced ten to fifteen hours a week and made all-star for two years. Kitty’s petition showed a monthly income of $4840 and expenses of $5,050. The expenses included annual football expenses of $6,500. The expenses did not include college costs for Daniel, or airfare for his upcoming summer trip to Budapest, and other items. The trustee allowed monthly expenses of $4,200, with nothing allocated for football expenses and requested that the court dismiss the petition.

If Kitty qualified for , which debts would be discharged? Which debts would not be discharged? Why?
Using the median income from your state, does Kitty qualify for ? Remember to count the number of people in the household.
If Kitty earns too much money, what are the next steps?
Should the court grant the trustee’s request? Does Kitty have other options if the  petition is dismissed?
Explain your answers and support them with relevant scholarly sources.
(Chapter 7 bankruptcy, also known as a straight or liquidation bankruptcy, is a type of bankruptcy that can clear away many types of unsecured debts. If you're far behind on your bills and don't have the means to afford monthly payments and living expenses, filing  bankruptcy could be the last resort to help you reset your finances.)

Answer rating: 100% (QA)

In bankruptcy chapter 7 it allows liquidation of asset to pay crediters as per US bankruptcy code In ... View the full answer