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Mara Corts and Manuel Santiago, shareholders of Recursos Solares, Inc., were embroiled in litigation in a Florida state court, accusing each other of attempts to
Mara Corts and Manuel Santiago, shareholders of Recursos Solares, Inc., were embroiled in litigation in a Florida state court, accusing each other of attempts to control Recursos Solares, Inc., through fraud. To delay state court proceedings, Corts filed a personal bankruptcy petition in federal bankruptcy court. Ownership of Corts' shares in Recursos Solares, Inc. passed to the bankruptcy trustee, but Corts ignored him. He called a meeting of shareholders of Recursos Solares, Inc., except Santiago, and voted on those shares to remove Santiago from the board and elect himself as president, CEO and treasurer. Subsequently, the board of Recursos Solares, Inc. dismissed all of Recursos Solares, Inc.'s claims against Corts in his trial with Santiago. Are there good reasons for the bankruptcy court to dismiss the Court's bankruptcy petition? Argue. [ (See Types of Bankruptcy Relief.) Carlos and Dulce Medina divorced. A New York state court ordered Carlos to pay alimony and child support to Dulce and half of the couple's $184,000 in their investment accounts. Instead, he withdrew more than half of the investment funds and spent them on himself. Over the next few years, the court repeatedly held Carlos in contempt for failing to pay Dulce. Six years later, Carlos filed for Chapter 7 bankruptcy, including the debt with Dulce for alimony, alimony and investment funds on the petition list. Is Carlos entitled to a discharge of this debt or does he qualify as an exception? Why or why not? (See Chapter 7Liquidation)
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