bankrupt? Mini-Case Problems 1. Alexander was insolvent and attempted to hide from his creditors his only asset, a valuable painting worth $10,000. Assuming that he is two months in arrears on his apartment rent of $1.000 per month owes his housekeeper back wages of $1,000 for one month's work, and owes unsecured creditors $12,000, what would the unsecured creditors receive in cents on the dollar if the trustees' fees and the costs of the bankruptcy were $2,000? 2. Baker owed $3,000 to Able, $42,000 to Alice and $1,000 to Henry. All of the debts were in default, but Henry believed that Baker had assets that would cover the debts. What steps could Henry take to obtain payment of his debt? 3. Shelley was in financial difficulty, and made a voluntary assignment in bankruptcy. At the time she owned a $100,000 property subject to a mortgage in the amount of $70,000, and had personal unsecured debts of $10,000. How will the assets be distributed if the property was sold for $93.000, and trustee fees were $3,000? Case Problems for Discussion