Bill filed a petition for bankruptcy under Chapter 7 of the Bankruptcy Act.Bill listed,among others,the following debts: a debt to the National Bank for $10,000 secured by his 1980 truck,which is valued at $3,500; an unsecured debt to his friend,Frances; a $500 debt to the IRS for 1989 federal income taxes; and a $500 student loan to the university which was due one year ago.Under these circumstances:

Question

Quizplus · Accepted Answer

Certain debts are not affected by the discharge of a bankrupt debtor.The Bankruptcy Code provides that a discharge in bankruptcy releases a debtor from all provable debts except for those that are due as a tax or fine to the United States or any state or local unit of government.

Bill Filed a Petition for Bankruptcy Under Chapter 7 of the Bankruptcy