Lowell recently graduated from college with a degree in business administration, but has been unable to find a job.He decided to file a Chapter 7 petition with the Bankruptcy Court.He has the following assets:
a.$1,200 in equity in a new car which he purchased with a loan from the bank.
b.$5,000 in equity in his residence, a condominium secured by a mortgage.
c.$100 a week in unemployment benefits after being laid off from his job as a burgermaker at a local restaurant.
d.$750 in business administration books including a hardly used copy of Mann and Roberts, Essentials of Business Law and the Legal Environment.
e.a $1,000 retainer for his teeth prescribed by his orthodontist.

His debts are as follows:

a.
$10,000 in student loans.

b.
$20,000 to the bank for his car, which is secured by the car.

c.
$5,000 in unsecured credit card debts.

Under federal exemptions, what can he keep? What will each of the creditors receive? Explain.

Question

Lowell recently graduated from college with a degree in business administration, but has been unable to find a job.He decided to file a Chapter 7 petition with the Bankruptcy Court.He has the following assets: 
a.$1,200 in equity in a new car which he purchased with a loan from the bank.
b.$5,000 in equity in his residence, a condominium secured by a mortgage.
c.$100 a week in unemployment benefits after being laid off from his job as a burgermaker at a local restaurant.
d.$750 in business administration books including a hardly used copy of Mann and Roberts, Essentials of Business Law and the Legal Environment.
e.a $1,000 retainer for his teeth prescribed by his orthodontist.

His debts are as follows:

a.
 $10,000 in student loans.

b.
 $20,000 to the bank for his car, which is secured by the car.

c.
 $5,000 in unsecured credit card debts.

Under federal exemptions, what can he keep? What will each of the creditors receive? Explain.

Quizplus · Accepted Answer

The Answer of Lowell recently graduated from college with a degree in business administration, but has been unable to find a job.He decided to file a Chapter 7 petition with the Bankruptcy Court.He has the following assets: 
a.$1,200 in equity in a new car which he purchased with a loan from the bank.
b.$5,000 in equity in his residence, a condominium secured by a mortgage.
c.$100 a week in unemployment benefits after being laid off from his job as a burgermaker at a local restaurant.
d.$750 in business administration books including a hardly used copy of Mann and Roberts, Essentials of Business Law and the Legal Environment.
e.a $1,000 retainer for his teeth prescribed by his orthodontist.

His debts are as follows:

a.
 $10,000 in student loans.

b.
 $20,000 to the bank for his car, which is secured by the car.

c.
 $5,000 in unsecured credit card debts.

Under federal exemptions, what can he keep? What will each of the creditors receive? Explain.

Lowell Recently Graduated from College with a Degree in Business