Kate Is Granted a Chapter 7 Discharge After Filing for Bankruptcy.However,she

question 57

Multiple Choice

Kate is granted a Chapter 7 discharge after filing for bankruptcy.However,she still has about $20,000 of unsecured debt in the form of credit card debt.Which of the following is true in this case?

• A) Kate is liable to pay the debt with her exempt property.
• B) Kate is liable to pay the money with her postpetition income.
• C) Kate is legally relieved of this debt.
• D) Kate is liable to pay the debt with her future earnings.

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Definitions:

T-account

A graphical representation of a ledger account that outlines the effects of transactions on a specific account, used in double-entry bookkeeping.

Transactions

Financial interactions or exchanges between two or more parties, often involving the transfer of goods, services, or funds.

Investing Activity

Refers to buying and selling long-term assets and other investments, a key part of a company's cash flow statement.

Statement of Cash Flows

An overview presenting the collective cash revenues from a company’s operational efforts and external funding sources, together with all cash disbursements for corporate actions and investments, during a designated period.