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

question 64

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.
-What is the status of the exemption Liane claimed on the residence?

• A) It will likely be allowed because the value claimed is within the federal exemption allowed.
• B) It will likely be allowed because although it is more than the federal exemption, no creditor filed an objection to it.
• C) It will likely be disallowed because the federal limit for an exemption for a residence is $10,000.
• D) It will likely be disallowed because the federal limit for an exemption for a residence is $5,000.
• E) The status of the exemption is unclear without further information regarding the resale value of the home.

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Definitions:

Long-term Storage

The process of retaining information over extended periods, often throughout a person's life.

Short-term Storage

Short-term storage, also known as short-term memory, holds a small amount of information for a brief period, typically around 20 seconds.

Sensory Storage

A memory storage system that very briefly holds a vast amount of information from the five senses in close to their original sensory formats.

Computer Processing

Refers to the series of operations performed by a computer in order to collect, analyze, and store data.