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

question 26

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, Francis; 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. In this scenario, _____.

• A) the $500 debt to the IRS is a nondischargeable debt
• B) Francis can claim the debt 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 the highest

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Definitions:

Sense of Self

The individual's awareness of their own identity and personal characteristics, including beliefs, values, and physical self.

Externalizing Problems

Problem behavior that involves engaging in inappropriate conduct, especially aggressive acts.

Internalizing Problems

Problem behavior that involves negative feelings about self and other symptoms of depression.

Self-Esteem

An individual's subjective evaluation of their own worth or value.