Question
Kitty, a bookkeeper for Jabil Circuit, filed a petition in bankruptcy under Chapter 7, seeking to discharge $65,000 in credit-card debts and $45,000 in student
Kitty, a bookkeeper for Jabil Circuit, filed a petition in bankruptcy under Chapter 7, seeking to discharge $65,000 in credit-card debts and $45,000 in student loans.Kitty's husband died and left her with two children, Daniel, who attended college, and Darius, who was 14 years old.According to Kitty, Darius was a star football player who practiced ten to fifteen hours a week and made all-star for two years.Kitty's petition showed monthly income of $4840 and expenses of $5,050.The expenses included annual football expenses of $6,500.The expenses did not include college costs for Daniel, or airfare for his upcoming summer trip to Budapest, and other items.The trustee allowed monthly expenses of $4,200, with nothing allocated for football expenses and requested that the court dismiss the petition.
- If Kitty qualified for Chapter 7, which debts would be discharged?Which debts would not be discharged?Why?
- Using the median income from your state, does Kitty qualify for Chapter 7?Remember to count the number of people in the household.
- If Kitty earns too much money, what are the next steps?
- Should the court grant the trustee's request?Does Kitty have other options if the Chapter 7 petition is dismissed?
- Explain your answers and support them with relevant scholarly sources.
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