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II. Carol has filed a chpt 7 bankruptcy petition. Trustee has separated Carol's exempt assets from the non-exempt assets. The non-exempt assets are a coin
II. Carol has filed a chpt 7 bankruptcy petition. Trustee has separated Carol's exempt assets from the non-exempt assets. The non-exempt assets are a coin collection, 200 shares of Texaco stock and an antique clock. Trustee sell the coin collection for $4000, the Texaco stock for $2200 and the clock for $800. Carol's creditors are: Secured Creditor: $6000 debt. Secured Creditor has a security interest in Carol's coin collection. Priority Creditor: $2600. The limit on the priority claim is $1000. Aunt Shirley: $1000 debt. Nordstrom's: $1400 debt. How much will each creditor be paid from the distribution of Carol's estate? Please be sure to explain your answer. The first to be paid in full would be the secure creditors, which would be the $4,000 from the coin collection. They would then be paid $2,000 from the remaining $3000 to satisfy the debt. The next to be paid would be the priority creditors, and because the limit for priority claim is $1,000, they will receive that from the sale proceeds. The sale proceeds are not enough to be able to satisfy the debt, it makes is to that Aunt Shirley and Nordstrom's will be then paid as the general contractors
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