Paula Sanford has filed a voluntary petition in bankruptcy.Paula has a job but admits that she is in over her head on credit card debt.The bankruptcy court:
A)can allow Paula to declare bankruptcy because she has debts.
B)can allow Paula to declare bankruptcy but Paula may have to go into a Chapter 13 debt adjustment plan.
C)has no remedies for consumers with only credit card debt.
D)none of the above

Question

Quizplus · Accepted Answer

The bankruptcy court can allow Paula to declare bankruptcy, but she may have to go into a Chapter 13 debt adjustment plan since she has a job and a regular income. Chapter 13 allows for a repayment plan over a period of three to five years. Chapter 7, which is a complete discharge of all debt, may not be an option for Paula since she has a job and a regular income.

Paula Sanford Has Filed a Voluntary Petition in Bankruptcy