Bill Filed a Petition for Bankruptcy Under Chapter 7 of the Bankruptcy

question 19

Multiple Choice

Bill filed a petition for bankruptcy under Chapter 7 of the Bankruptcy Act.Bill listed,among others,the following debts: a debt to the National Bank for $10,000 secured by his 1980 truck,which is valued at $3,500; an unsecured debt to his friend,Frances; a $500 debt to the IRS for 1989 federal income taxes; and a $500 student loan to the university which was due one year ago.Under these circumstances:

• A)the $500 debt to the IRS is a nondischargeable debt.
• B)Frances can claim the debt even without filing a proof of claim.
• C)the $500 student loan to the university is a dischargeable debt.
• D)the bank can receive preferential payment because the debt owed to it is highest.

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Definitions:

Entire Income

This term does not correspond to a specific economic concept; it might refer to total earnings or revenue of an individual or entity, but more context is needed for a precise definition. NO.

Uglifruits

A type of citrus fruit known for its unique appearance but sweet and tangy taste.

Breadfruits

A type of large, starchy tropical fruit, which can be used similarly to potatoes and is a staple food in many parts of the world.

Calorie Limit

A specified maximum number of calories to be consumed within a given period, often used for dietary planning or weight management.