[Exemptions] Liane Is Injured in an Automobile Accident and Cannot

question 37

Multiple Choice

[Exemptions] Liane is injured in an automobile accident and cannot work. She cannot pay her bills and files for bankruptcy relief under Chapter 7. Federal exemptions apply, and Liane lists as exempt $25,000 in equity in her residence; interest in a vehicle of $2,000; interest in jewelry of $400; and retirement funds in her individual retirement account. Her creditors filed an objection to all claimed exemptions except for the home equity claim.
-Once the petition is filed, which of the following forms Liane's bankruptcy estate?

• A) All her prepetition assets.
• B) The exempt assets only.
• C) The nonexempt assets only.
• D) The personal goods only.
• E) The real estate only.

---

Definitions:

Probability

An assessment of an event's chances of occurring, measured as a value from 0 to 1.

Random

Referring to an event or selection process that has no specific pattern, order, or aim, and is governed by chance.

First Serves

In tennis, the initial serves in a game where the server has two opportunities (first and second serve) to successfully start a point.

Independent Events

Events in probability where the outcome of one event does not affect the outcome of another.