The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 2IS
Summary Introduction
Case summary: Person T was working as a salesperson before he files for bankruptcy. The petition of person T reveals that her only debts are taxes, student loans, and a claim against her on misuse of customer’s fund.
To find: The chances of discharging the petition of person T.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Mario files for bankruptcy. He owns one car worth $2,000.00. He will O not have to list it as an asset on his petition O keep the car O keep it if and only if he files a chapter 13 bankruptcy O give the title to the trustee
a debtor fails to appear at the Chapter 7 creditors' meeting, the court may refuse to grant the bankruptcy. True False
Giordana borrows $225,000 for Hearthstone Credit Union to buy a home, which secures the loan. Five years into the term, Giordana stops making payments. Hearthstone forecloses and sells the property, but the proceeds are not enough to cover the unpaid amount of the loan. Hearthstone could now obtain
a.a short sale
b.a redemption
c.a deficiency judgment
d.a guaranty
e.nothing more
Chapter 15 Solutions
The Legal Environment of Business: Text and Cases (MindTap Course List)
Knowledge Booster
Similar questions
- Anita, who is divorced, maintains a home in which she and her 16-year-old daughter live. Anita provides the majority of the support for her daughter and for a son, age 23, who is enrolled part-time at the university and lives in the dorm. The son also works in the campus bookstore and earns spending money of $4,500. Which of the following statements is correct regarding the number of dependents Anita can claim? OA. Anita can claim her daughter, but not her son, as a dependent. OB. Anita can claim her son, but not her daughter, as a dependent. OC. Both the son and daughter qualify as Anita's dependents. OD. Neither the daughter nor the son qualify as Anita's dependent.arrow_forwardWhich of the following premortem actions can increase the liquidity of a decedent's estate? Making certain that a client's will is executed with all of the required legal formalities Stating reasons in a client's will why a close family member is not receiving any part of the client's estate Urging a client to keep written current records of payments made by the client on debts owed to third parties Urging a client to require written security for a promissory note given to the client for assets purchased from the client A) I, II, and IV B) I and II C) I, II, III, and IV D) III and IVarrow_forwardFACT PATTERN TWO A debtor has an automobile worth $5000. The federal exemption applicable to her is $3225. The trustee sells the car and gives the debtor the amount of the exemption. The debtor, exhausted by the bankruptcy proceedings, takes the money and spends it on a six week vacation in Mexico. Is this abuse of the bankruptcy system?arrow_forward
- Mia resides in a home that she owns in New York. New York has a homesteaad exemption of $170,825, which is higher than the federal homestead exemption. When Mia files for Chapter 7 bankruptcy relief in New York, the federal homestead exemption will apply. True Falsearrow_forwardYou are a broker. Your sales associate is new and can't remember the key differences between lien types. You remind them: Liens can be voluntary or involuntary. Voluntary liens are created with the owner's consent. A lien can only apply to one piece of property a debtor owns Because of this, liens are always specific. Legally, liens cannot be involuntary. They must be created with the owner's consent and if they're not, they're illegal All liens affect all of the debtor's property. That's why they're also called general liens.arrow_forwardChapter 24, Question 1d - The Bankruptcy Reform Act of 1978 was enacted to slow down and streamline bankruptcy proceedings. O True Falsearrow_forward
- Phillip is a broker who was hired by Sam to help him find a new investment property. Phillip identifies a property that fits Sam's investing criteria. Sam asks Phillip to do some research and provide him with an opinion of title on the property. Is Phillip permitted to do this? ○ No. This would be considered an unauthorized practice of law. No. Phillip needs his sales associates license in order to issue an opinion of title. Yes. Brokers are always permitted to issue an opinion of title. Yes. As long as Phillip notifies FREC, he can issue an opinion of title.arrow_forward3. With respect to foreclosure, give the reason you agree or disagree with the statements below: a. A foreclosure sale eliminates the outstanding debt(s) of the individual being foreclosed. b. Proceeds of a foreclosure sale are distributed to those holding a lien on the property on the basis of the percentage of total debt each is owed. c. Foreclosure means the senior mortgage loan lender automatically takes ownership of the property.arrow_forwardJoe took out a loan to purchase a new house. In return, Joe's lender placed a lien on the property. Is this legal? O No. Only Joe can place a lien his property. O No. A lender is never allowed to place a lien on a property as long as the borrower is up-to-date ontheir payments. О Yes. This is a voluntary mortgage lien that allows the lender to foreclose on the property if Joe defaults on the loan. O Yes. However, the lien is only valid for 12 months.arrow_forward
- Donald Wayne Doyle (Debtor) obtained a guaranteed student loan to enroll in a school for training truck drivers. Due to his impending divorce, Debtor never attended the program. The first monthly installment of approximately $50 to pay the student loan became due. Two weeks later, Debtor filed a voluntary petition for Chapter 7 bankruptcy. Debtor was a 29-year-old man who earned approximately $1,000 per month at an hourly wage of $7.70 as a truck driver, a job that he had held for 10 years. Debtor resided on a farm, where he performed work in lieu of paying rent for his quarters. Debtor was paying monthly payments of $89 on a bank loan for his former wife’s vehicle, $200 for his truck, $40 for health insurance, $28 for car insurance, $120 for gasoline and vehicular maintenance, $400 for groceries and meals, and $25 for telephone charges. In addition, a state court had ordered Debtor to pay $300 per month to support his children, ages 4 and 5. Debtor’s parents were assisting him by…arrow_forwardAfter a complaint was filed against him, Broker Ike was found guilty of a license law violation. He was fined and had to pay legal fees totaling $8,900. This was paid by the Recovery Fund. What else is likely to happen to Broker Ike? . The FREC can issue a citation and the Ike's license becomes involuntary inactive. O The FREC will suspend the Ike's license until the fund has been repaid in full. O The FREC declares Ike's license null and void. The FREC will revoke the Ike's license.arrow_forwardLarry Lyons donated a small office building to a qualified charity when the adjusted basis was $90,000 and the fair market value was $160,000. Larry had taken DEpreciation deductions in excess of straight-line depreciation of $50,000. What is Larry's charitable contribution before application of limitsarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage Learning
Accounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education
BUSN 11 Introduction to Business Student Edition
Business
ISBN:9781337407137
Author:Kelly
Publisher:Cengage Learning
Essentials of Business Communication (MindTap Cou...
Business
ISBN:9781337386494
Author:Mary Ellen Guffey, Dana Loewy
Publisher:Cengage Learning
Accounting Information Systems (14th Edition)
Business
ISBN:9780134474021
Author:Marshall B. Romney, Paul J. Steinbart
Publisher:PEARSON
International Business: Competing in the Global M...
Business
ISBN:9781259929441
Author:Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher:McGraw-Hill Education