Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with these questions based on the prompt I was given below! Everything in the question is included below. This question is based on

Please help with these questions based on the prompt I was given below! Everything in the question is included below. This question is based on Chapter 7 Bankruptcy.

image text in transcribed
Three months ago, Mary Jones' husband of 20 years passed away after a serious long-term illness. Although he had medical insurance, he left Mary with outstanding medical bills of more than $80,000. Mary has worked in a local soup kitchen for the past 10 years earning $1,500 per month. Since her husband passed away, Mary receives $1,500 in social security per month and $1,100 in life insurance proceeds every month. Mary's total income is $4,100 per month. After Mary pays her mortgage of $1,500 per month and other debts, Mary barely has enough money to buy groceries for her family (she has 2 teenage daughters at home). Mary decides to le for Chapter 7 Bankruptcy hoping for a fresh start and to not have to pay her husband's medical bills. Please answer the following questions: 1. What must Mary do before ling a petition for release under Chapter 7? Please fully explain your answer. 2. How much time does Mary have after ling the bankruptcy petition to submit the required schedule? What happens if Mary does not meet the deadline? Please fully explain your answer. 3. Assume Mary les a petition under Chapter 7, further assume that the median family income in her geographical area is $48, 500. What steps would a court take to determine whether Mary's petition is presumed to be "substantial abuse\" using the means test. 4. Suppose the court determines that no presumption of "substantial abuse\" applies in Mary's case. Nevertheless, the court nds that Mary does have the ability to pay at least a portion of her husband's medical bills out of her disposable income. What would the court likely order in this situation and why? Please fully explain your answer. 5. Debate this: Rather than being allowed to le a Chapter 7 Bankruptcy petition individuals and couples should always be forced to make an effort to pay off their debts. What is your opinion? Please fully explain your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Regulation Of Lawyers Problems Of Law And Ethics

Authors: Stephen Gillers

12th Edition

1543825869, 978-1543825862

More Books

Students also viewed these Law questions

Question

2. It is the results achieved that are important.

Answered: 1 week ago