Agnes Plans to File for Bankruptcy Under Chapter 7

question 39

Multiple Choice

Agnes plans to file for bankruptcy under Chapter 7.One month prior to filing,Agnes gives Joe's Filling Station $700 to apply to her gas bill.Joe has been so kind to let her charge the gas she needed for her car over the past year.The bankruptcy trustee appointed to the case

• A)can cancel the payment to Joe as a fraudulent transfer.
• B)cannot cancel the payment to Joe because it is payment for an existing debt.
• C)cannot cancel the payment to Joe because he is not an insider.
• D)can cancel the payment to Joe as a voidable preference.

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Definitions:

Computer Technology

The study and use of computers, software, and systems for processing, storing, and sending information.

Accountants

Professionals who perform accounting functions such as audits or financial statement analysis according to prescribed methods.

Human Capital Investment

The process of increasing an individual's skills, knowledge, and expertise through education, training, and health improvements, aimed at enhancing productivity and earning potential.