Matthew Has Filed for Chapter 7 Bankruptcy Relief

question 6

Multiple Choice

Matthew has filed for Chapter 7 bankruptcy relief.He had borrowed money from his best friend,Rick,for the purchase of a car.Matthew really wants to repay Rick,but does not want to jeopardize his bankruptcy relief and the discharge of a number of other debts.What option,if any,is open to Matthew?

• A) No options are open to Matthew because any payment to Rick would be considered a voidable preference.
• B) Matthew can reaffirm the debt to Rick, and the bankruptcy judge has no authority to interfere in that decision.
• C) Matthew can reaffirm the debt to Rick, but the bankruptcy judge has the authority to disapprove of the agreement if the court finds that it is not in Matthew's best interest.
• D) Matthew can reaffirm the debt to Rick but only up to 50% of the maximum amount owed, and the bankruptcy judge has the authority to disapprove of the agreement if the court finds that it is not in Matthew's best interest.

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Definitions:

Silence

The absence of verbal communication, which can convey meaning or express contemplation.

Verbal Vacuum

A communication strategy where one intentionally remains silent, encouraging the other party to talk more and potentially reveal more information or concessions.

Acting Deceptively

Engaging in behaviors meant to mislead or trick others, often to gain an unfair advantage.

Balance Of Power

A situation in which power is distributed in a manner that no single entity or alliance can dominate others in negotiations or relationships.