COPYRIGHTED MATERIAL
LET’S PRACTICE
Name: _____________________________________________________________________________
17. When assets are liquidated in a Chapter 7 bankruptcy, they are: a. destroyed by court order
1 PT ___
c. registered as joint property
b. sold to pay creditors d. seized by the government 18. T F Chapter 9 bankruptcy applies to municipalities, like school districts and cities. 19. A few years ago, Lisa lost her temper and got into a fight with her now ex-boyfriend. She broke his nose. She was charged with assault and ordered to reimburse his medical costs of $15,000. She still owes the ex $10,000. She wants to file bankruptcy to unload the restitution order and move on. Can she? Explain. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 20. Marta had a terrible year. First she had a bad car accident. She didn’t have disability insurance, so she had to rely on credit cards to pay her bills while she was laid up from work from her injuries. Now she owes $6000 on her cards including late fees and penalties. Then she made a bonehead move and went to an out-of-network doctor running up $5000 in uncovered medical bills. She’s moved back in with her mom and dad but owes $3000 in rent to her former landlord. She owes $600 on a payday loan and $1000 to the utility company. She has nothing left but the clothes on her back and a bus pass. If she files Chapter 7, which debts can she eliminate? Will her clothes and bus pass be sold? What is this type of Ch. 7 case called? _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ PRODUCT PREVIEW
1 PT ___
2 PTS ___
3 PTS ___
SCORE: ____ / 34 PTS
Chapter 18 | Resolving Insolvency 368
Made with FlippingBook - Online catalogs