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

question 18

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 for individual retirement account funds?

• A) She will not be able to claim that exemption.
• B) The status of the exemption is unclear without further information regarding beneficiaries of the IRA.
• C) She will be able to claim that exemption.
• D) She will be able to claim that exemption but only up to $50,000.
• E) She will be able to claim that exemption but only up to $25,000.

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Definitions:

Additional Assets

New or extra resources, including property and equipment, acquired by a company to support its operations.

Expected Level

Refers to the anticipated or projected standard of performance, quality, or outcome in a given context.

Operating Plans

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Projections

Forward-looking estimates or predictions about a company's financial performance, often involving revenue, expenses, and profit forecasts.