Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 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?

Can you consider the wildcard exemption?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Family Law

Authors: Jonathan Herring

10th Edition

1292343257, 978-1292343259

More Books

Students also viewed these Law questions