Scenario 1Bankruptcy 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 Kittys 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 Kittys petition showed a 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 trustees request Does Kitty have other options if the Chapter 7 petition is dismissed Explain your answers and support them with relevant scholarly sources (Chapter 7 bankruptcy, also known as a straight or liquidation bankruptcy, is a type of bankruptcy that can clear away many types of unsecured debts If you're far behind on your bills and don't have the means to afford monthly payments and living expenses, filing Chapter 7 bankruptcy could be the last resort to help you reset your finances )

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Posted on Jul 22, 2024

Scenario 1Bankruptcy 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

Scenario 1Bankruptcy

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. Kittys 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. Kittys petition showed a 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 trustees request? Does Kitty have other options if the Chapter 7 petition is dismissed?
Explain your answers and support them with relevant scholarly sources.

(Chapter 7 bankruptcy, also known as a straight or liquidation bankruptcy, is a type of bankruptcy that can clear away many types of unsecured debts. If you're far behind on your bills and don't have the means to afford monthly payments and living expenses, filing Chapter 7 bankruptcy could be the last resort to help you reset your finances.)