Edith Files a Chapter 7 Petition in Bankruptcy

question 2

Multiple Choice

Edith files a Chapter 7 petition in bankruptcy.She owns the following property: (1) an automobile valued at $1,000; (2) a homestead valued at $75,000,on which First Bank holds a mortgage of $50,000; (3) personal jewelry valued at $1,100;and (4) monthly disability payments of $1,000.Assuming Edith elects to use the exemptions listed in the Bankruptcy Code,what property may Edith keep?

• A) The disability payments only.
• B) The disability payments and the homestead only.
• C) The disability payments plus the automobile,at least part of the equity in the homestead,and the jewelry.
• D) Nothing.She must sell all of her assets and have the proceeds distributed to the creditors,and she must turn the disability payments over to the trustee.

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Definitions:

Overregularizing

The linguistic process often seen in children's language development where they apply regular grammatical rules to words that require irregular forms.

Grammatical Rules

The set of structural guidelines governing the composition of clauses, phrases, and words in any given natural language.

Overregularizing

The process in which children apply general grammatical rules too widely, often leading to grammatical errors.

Overextending

The act of committing oneself beyond what is manageable or financially comfortable.