Question
Three months ago, Janet Harts husband of twenty years died of cancer. Although he had medical insurance, he left Janet with outstanding medical bills of
Three months ago, Janet Harts husband of twenty years died of cancer. Although he had medical insurance, he left Janet with outstanding medical bills of more than $50,000. Janet has two teenage daughters to support. She has worked at the local library for the past ten years, earning $1,500 per month. Since her husbands death, she has also received $1,500 in Social Security benefits and $1,100 in life insurance proceeds every month, for a total monthly income of $4,100. After making the mortgage payment of $1,500 and paying the amounts due on other debts, Janet has barely enough left to buy groceries for her family. She decides to file for Chapter 7 bankruptcy, hoping for a fresh start. Suppose that the court determines that no presumption of substantial abuse applies in Janets case. Nevertheless, the court finds that Janet does have the ability to pay at least a portion of the medical bills out of her disposable income. What would the court likely order in that situation?
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