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Mary borrows $20,000 from Credit Union to buy a new car. The car loan is for five years and the car is the security
Mary borrows $20,000 from Credit Union to buy a new car. The car loan is for five years and the car is the security for the loan. Three years after Mary gets the car loan, she files for Chapter 7 bankruptcy. The car has a fair market value of $10,000 but the car loan is for $7,000. In this Chapter 7 bankruptcy general creditors get 10 cents on the dollar. As a creditor, how much does the Credit Union get in total in the bankruptcy process, assuming the Trustee sells the car for $7,000? $7,000 $7,100 $7,300 $700 $1,000 $1,300
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