Randy Giuliani petitions the court for Chapter 7 bankruptcy. The total cash value of his assets is $115,000 as of the date of the filing. The bankruptcy trustee later is able to recover $20,000 by setting aside a fraudulent conveyance and Randy receives a gift from his sister in the amount of $10,000. He has $15,000 in exempt assets (which is included in the $115,000 original total value mentioned). There are $10,000 in bankruptcy administrative costs. Randy's former employee Bill files a timely and valid claim for $5,000 for wages owed to him. The Adair County Collector files a timely and valid claim for $3,000 for back personal and real property tax. Randy's former wife Brenda files a timely and valid claim for back child support and alimony in the amount of $60,000. American Express (credit card company) files a timely and valid claim for $50,000. What will American Express receive? A. 0 B. $35,000 C. $42,000. D. $50,000
Randy Giuliani petitions the court for Chapter 7 bankruptcy. The total cash value of his assets is $115,000 as of the date of the filing. The bankruptcy trustee later is able to recover $20,000 by setting aside a fraudulent conveyance and Randy receives a gift from his sister in the amount of $10,000. He has $15,000 in exempt assets (which is included in the $115,000 original total value mentioned). There are $10,000 in bankruptcy administrative costs. Randy's former employee Bill files a timely and valid claim for $5,000 for wages owed to him. The Adair County Collector files a timely and valid claim for $3,000 for back personal and real property tax. Randy's former wife Brenda files a timely and valid claim for back child support and alimony in the amount of $60,000. American Express (credit card company) files a timely and valid claim for $50,000. What will American Express receive?
| A. |
0 |
|
| B. |
$35,000 |
|
| C. |
$42,000. |
|
| D. |
$50,000 |
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