Edith Files a Chapter 7 Petition in Bankruptcy

question 17

Multiple Choice

Edith files a Chapter 7 petition in bankruptcy.She owns the following property: (1) an automobile valued at $1,000; (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:

Total Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.

Output Range

The spectrum of quantities of goods or services that a company can produce under certain conditions or within a specified period.

Elastic Demand

Refers to a market scenario where the quantity demanded of a product changes significantly when its price changes.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.