Question
For this IP you will need to access the VT statute on Bankruptcy exemptions. After reviewing the statute and after considering the following facts, you
For this "IP" you will need to access the VT statute on Bankruptcy exemptions. After reviewing the statute and after considering the following facts, you will be asked to answer a few questions: Imagine you are facing extreme financial distress due to job loss and an illness. You have incurred the following debts: 1. Mortgage of $75,000.00 on your home valued at $150,000.00. 2. Car debt of $5,000 on a car valued at $7,000.00. 3. Credit card debt of $10,000.00. 4. Hospital debt of $40,000.00. 5. Federal taxes incurred in the last year of $5,000.00. 6. Unsecured debt to cousin Arthur of $2,500.00. 7. Magazine subscription of $250.00. 8. Debt for a "repoed' car of $6,000.00. 9. Federal guaranteed school loan of $20,000.00 You have the following assets: A. Your house with an equity value of $75,000.00. B. Your car with an equity value of $2,000.00. C. Cash of $2,000.00 (held in a bank account.) D. Furniture and appliances valued at $2,500.00. E. Roth IRA valued at $10,000.00. F. Heirloom watch valued at $2,000.00. ANSWER: What debts can and cannot be discharged in a Chapter 7 bankruptcy? What assets can the debtor keep? Are there any assets that the debtor cannot keep? What must the debtor allege and prove in order to discharge the student loans? BE SURE TO CONSIDER THE "WILDCARD " EXEMPTION
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