[Consumer Debt] Isabel Had Not Been Keeping Up with Her

question 63

Multiple Choice

[Consumer Debt] Isabel had not been keeping up with her spending and bought several expensive items.Between numerous credit cards and some unsecured loans,she had a total of 14 creditors.All her debt was consumer debt,and Isabel really wished that she had not put all those new clothes on her credit card.Although Isabel was struggling,she did not want to file for bankruptcy because she did not want a bad credit score.However,three of her credit card companies signed and filed an involuntary bankruptcy petition against her under Chapter 7.Isabel is unsure about how to proceed.While she is several months behind on a number of payments,including alimony payments she believes were unfairly awarded to her ex-husband,she does not particularly want to go bankrupt.She believes that the creditors have been unfair in not allowing her additional time in which to pay.On the other hand,she would really like to be rid of her excessive debt and stop collection efforts on the part of her ex-husband.
-Which of the following is true regarding the involuntary petition for bankruptcy filed by some of Isabel's creditors?

• A)Involuntary petitions are not allowed under Chapter 7.
• B)The petition was properly filed because 3 or more creditors with unsecured claims signed the petition for involuntary bankruptcy.
• C)The petition was properly filed because only 2 or more creditors with secured or unsecured claims must sign a petition for involuntary bankruptcy.
• D)Only 3 creditors may file an involuntary petition,but their aggregate claims must be $20,100;therefore,the petition will be dismissed in Isabel's case.
• E)At least 5 creditors must file in order for an involuntary petition to be accepted;therefore,the involuntary petition will be dismissed in Isabel's case.

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Definitions:

Wider Society

The broader community or populace, encompassing various demographics and social groups beyond one's immediate environment.

Moral Positions

Refer to the stances or viewpoints individuals hold concerning what is right and wrong, often influenced by their personal values, culture, and societal norms.

Overcoming Inequality

The efforts and processes involved in reducing and eventually eliminating discrepancies in wealth, opportunity, and rights among different groups in society.

Well-Ordered Society

A society that is structured and organized in such a way that it promotes the welfare and justice for all its members.