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:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects do.

Equipotentiality

A concept in neurology and psychology proposing that one part of the brain can take over the functions of another part if it gets damaged, emphasizing the brain's adaptability.

Belongness

is the human emotional need to be an accepted member of a group, whether it is friends, family, co-workers, or any other group.

Contiguity

The proximity or physical closeness between two things, used especially in reference to concepts in learning theory where events close in time or space are associated.