Assuming you are the debtors lawyer in the bankruptcy of Jerry Mayers who teaches antitrust law and copyright at the University of the Southern States Law School in Biloxi, Mississippi. Six months before filing his bankruptcy case, Mayers incurred several debts which led to the following claims in his bankruptcy case. First, Local Bank filed an unsecured claim for $950. Six months before his bankruptcy filing, Mayers had applied for a loan for $1,000 to pay for his various bad habits. Local Bank had him fill out a financial statement in connection with the loan. He had nine debts totaling $12,000. He asked the loan officer what to do, and the bank official told him to just do your best. Mayers listed the four highest debts totaling $8,000, but omitted the other eight. Mayers signed the financial statement and gave it to the bank official, who promptly put it in the filing cabinet. The bank officer then immediately gave Mayers the $1,000 in $50 dollar bills.

Second, a claim for $7,555 by American Express for charges on Mayerss American Express Charge Card. Mayers tells you that for the two years before bankruptcy, he let his sister use the card because she was starting a business and needed the credit. Further discussions reveal that Mayerss sister has been receiving government assistance for five years, and that her business is already in financial difficulty because she cannot pay its bills. Mayers says he shouldnt be responsible for this bill, but you determine that his sister is not an authorized card holder under Mayerss account agreement with AMEX. Finally, Mayerss brother loaned him $2,000 a month before his bankruptcy filing with no questions asked. Apparently Mayers had done the same for his brother awhile back, and his brother wished to reciprocate. Mayers promptly went to a local casino and blew all of the money. While losing at blackjack (he plays based upon his gut, not his brain), Mayers told the dealer that his brother and his whole family could go to Hades for all I care theyve taken from me all my life, now Im going to get them.

Required: Anticipate any arguments that the foregoing creditors might make in seeking to maximize their recovery in Mayerss bankruptcy case, and evaluate what the result will be. Please state any additional facts that might be relevant to a final determination in each case.