Edith Files a Chapter 7 Petition in Bankruptcy

question 88

Multiple Choice

Edith files a Chapter 7 petition in bankruptcy. She owns the following property: (1) an automobile valued at $1,800; (2) a homestead valued at $75,000, on which First Bank holds a mortgage of $60,000; (3) personal jewelry valued at $1,100; and (4) monthly disability payments of $1,000. Assuming Edith elects to use the exemptions listed in the Bankruptcy Code, what property may Edith keep?

• A) The disability payments only.
• B) The disability payments and the homestead only.
• C) The disability payments plus the automobile, the homestead, and the jewelry.
• D) Nothing. She must sell all of her assets and have the proceeds distributed to the creditors, and she must turn the disability payments over to the trustee.

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Definitions:

Nature

The phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth.

Modeling

The process of learning by observing and imitating the behaviors, attitudes, or emotional expressions of others.

Psychoanalytic Perspective

A theory and approach to psychology and human behavior emphasizing unconscious motivations and early childhood experiences in shaping personality and behavior.

Lev Vygotsky

A Russian psychologist known for his work on cognitive development, particularly the sociocultural theory that development is influenced by social interactions.