John and Jane Smith are a married couple with two small children. When they were students, they borrowed about $75,000 to finance their educations. John received a master's degree in business and Jane earned a teaching certificate. Over the course of the past five years, John and Jane have stretched themselves financially by purchasing a home, furnishing it, and raising their young family. The Smith's youngest child was born with a heart defect which required extensive medical care. Recently, John was laid off from his job managing computer technology operations for a telecom company. Jane was injured in an auto accident and was unable to teach while recovering. John's unemployment benefits are barely sufficient to provide the family with ordinary necessities, much less meet their heavy financial obligations. The bank has filed a notice of intent to foreclose the mortgage on their home and creditors have sent letters threatening to repossess their car and furnishings. The Smiths are considering filing for bankruptcy protection. Can the Smiths get debt relief? Answer the following, then explain why. 1. What types of debts are burdening the Smiths? 2. Which chapters of bankruptcy are they eligible for? 3. What are the advantages and disadvantages to the Smiths in filing those chapters? 4. What assets would they be able to retain in any case? 5. What debts are dischargeable? What debts are not? 6. Should they file bankruptcy? What will happen to the Smiths in the long-run if they get debt relief?