You are the attorney for Ima Bankrupt, an Indiana resident. Ima's creditors are hounding her and she
Question:
You are the attorney for Ima Bankrupt, an Indiana resident. Ima's creditors are hounding her and she wants to file bankruptcy to wipe out the debts and qualifies for Ch. 7. Her debts are as follows: credit cards, mortgage, child support, federal taxes, judgment for a battery of ex-friends, and hospital bills. Her assets are as follows: house (equity $5,000), household goods (value $2,000), car (value $1,000), and Pepsi stock (value $1,000). Just two months ago, Ima gave her brother a valuable family heirloom and paid off a loan from a persistent creditor. Assume the debtor is below the poverty level.
A. What happens to the creditor demands?
B. What debts are dischargeable?
C. What assets are exempt (and amounts) and what goes into the bankrupt estate?
D. Are there other bankruptcy alternatives for Ms. Bankrupt?
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston