Janine decides to make an assignment into bankruptcy. She has a number of creditors, including those that are secured (a bank has a mortgage against her house), preferred (the government, for some unpaid taxes) and general unsecured creditors (all of the remainder). Janine would like to keep her household furniture worth $1500, but she will not be able to do so because all of her property must be made available to satisfy the claims of creditors.

Question

Quizplus · Accepted Answer

In bankruptcy, certain personal property, like household furniture, may be exempt from being used to satisfy creditors' claims, depending on the jurisdiction's laws.

Janine Decides to Make an Assignment into Bankruptcy