What Happens If an Exemption Filed in Court by a Debtor

question 7

Multiple Choice

What happens if an exemption filed in court by a debtor is limited to a certain amount of money?

• A) The debtor will lose his entire exemption if the property is valued over the designated amount.
• B) An appraiser assesses the value of the property claimed by the debtor as an exemption.
• C) The debtor has the burden of proving the value of the exempt property.
• D) The creditor has the burden of proving the value of the exempt property.
• E) The value of the exempt property is determined based on the original purchase price.

---

Definitions:

Perfect Complements

Goods that are often used together in fixed proportions, where the utility of one item increases with the usage of the other.

Wage Rate

The amount of money paid to an employee per unit of time, often per hour or day.

Utility Function

A mathematical representation in economics that captures an individual's preference ranking for different bundles of goods or outcomes.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or inheritances.