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:

Ventures

Refers to new business activities or projects that involve risk but have the potential for significant reward.

Acquisitions

The act of acquiring control of a company by another company through purchasing a majority stake or its entirety.

Profitability

The ability of a business or project to generate earnings compared to its expenses and investments.

Competition

The rivalry between companies or individuals for market share, recognition, or financial gain.