Which of the Following Debts Are Dischargeable in a Chapter

question 60

Multiple Choice

Which of the following debts are dischargeable in a Chapter 7 bankruptcy proceeding?

• A) A $10,000 judgment that has not yet been executed.
• B) Medical expenses of $25,000.
• C) Credit card debts of $15,000 from two years ago.
• D) All of these are dischargeable.

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Definitions:

Indirect Labor Cost

Expenses associated with employees who assist in the production process indirectly, such as maintenance and janitorial staff, contributing to the overall production environment.

Factory Insurance Cost

The premiums paid for insurance policies that protect manufacturing facilities and operations against risks like fire, theft, or worker injuries.

Overhead Cost Applied

The amount of indirect costs allocated to a particular cost object, such as a product or project, based on a predetermined overhead rate.

Manufacturing Overhead Cost

Indirect expenses related to the manufacturing process, such as utilities, maintenance, and factory equipment depreciation.