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The husband of the husband/wife ownership team has run up credit card debt on eight credit cards totaling $160,000. He also has two bank loans
The husband of the husband/wife ownership team has run up credit card debt on eight credit cards totaling $160,000. He also has two bank loans totaling $180,000 for the Maseratis he and his wife drive. He also has federal and state income tax liens that were just filed against him because of his failure to pay the taxes for the past 4 years; these liens now total $3.5 million including interest and penalties. He personally guaranteed the three bank loans for the real estate company. Finally, the husband owes $250,000 in child support payments for his children from prior marriages; he stopped making the payments several years ago and he has argued that they were set at a time when his income was much higher and should be readjusted. The husband earns a salary of $400,000 from the various companies, and he gets regular dividend distributions of about $500,000 annually from the company making a profit. Unfortunately, he spends more than he earns. The husband is considering filing for bankruptcy. (1) What possible chapters (7, 11, 13) of the Bankruptcy Code should be considered as the basis for filing a bankruptcy petition? (2) Can the husband get out from under all of these debts? If not, which debts are not dischargeable? (3) What would be a reasonable plan that you believe would be acceptable to creditors
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