Oscar is an individual with an average monthly income which is below the California state median income for a family of the same size. Oscar filed a Chapter 7 bankruptcy petition in California on September 1, 2020. One year before he filed for bankruptcy Oscar sold to his brother Oscar's Rolex watch worth $3,000 for $50 because Oscar wanted to keep his Rolex watch out of his bankruptcy estate. And, on September 10, 2020 Oscar's uncle died and by the terms of his life insurance policy he left Oscar $40,000 which was paid to Oscar on September 20th while Oscar's bankruptcy case was still pending.

At the time of his bankruptcy filing Oscar owed various creditors including a $10,000 judgment against Oscar held by Mr. Jones arising from a boating accident Oscar caused when he drove a boat negligently in Newport Harbor, resulting in injuries to Mr. Jones.

A. Is Oscar entitled to proceed with a Chapter 7 bankruptcy or should his petition be dismissed because granting relief under Chapter 7 would be an abuse? Explain.

B. Are the life insurance proceeds part of Oscar's bankruptcy estate? Discuss.

C. Will the judgment for $10,000 be discharged in Oscar's bankruptcy? Discuss.

D. What, if anything, will likely happen to the Rolex watch Oscar sold to his brother? Discuss.