Personal bankruptcy, Under the Bankruptcy Code after the

Personal bankruptcy

Reference no: EM133154328

Debate This: Personal Bankruptcy

Chapter 26

Three months ago, Janet Hart's husband of twenty years died of cancer. Although he had medical insurance, he left Janet with outstanding medical bills of more than $50,000. Janet has worked at the local library for the past ten years, earning $1,500 per month. Since her husband's death, Janet also has received $1,500 in Social Security benefits and $1,100 in life insurance proceeds every month, giving her a monthly income of $4,100. After she pays the mortgage payment of $1,500 and the amounts due on other debts each month, Janet barely has enough left over to buy groceries for her family (she has two teenage daughters at home). She decides to file for Chapter 7 bankruptcy, hoping for a fresh start. Using the information provided in the chapter, answer the following questions.

Under the Bankruptcy Code after the reform act, what must Janet do before filing a petition for relief under Chapter 7?

How much time does Janet have after filing the bankruptcy petition to submit the required sched-ules? What happens if Janet does not meet the deadline?

Assume that Janet files a petition under Chapter 7. Further assume that the median family income in the state in which Janet lives is $49,300. What steps would a court take to determine whether Janet's petition is presumed to be substantial abuse under the means test?

Suppose the court determines that no presumption of substantial abuse applies in Janet's case. Nevertheless, the court finds that Janet does have the ability to pay at least a portion of the medical bills out of her disposable income. What would the court likely order in that situation?

Debate This:

Rather than being allowed to file Chapter 7 bankruptcy petitions, individuals and couples should always be forced to make an effort to pay off their debts through Chapter 13.

Reference no: EM133154328

Questions Cloud

Describe what is the range of possible values : Describe what is the range of possible values of the attributes, and visualise these in a graphical format

Describes New Jihad : Describes 'New Jihad." When did this movement begin, and why it is important?

Did watts behavior constitute intentional tort : Did Watts's behavior constitute intentional tort or tort of negligence? What is the key factor in determining whether Buy-Mart is liable under this doctrine?

Generate a random fish and weight : Generate a random fish and weight, you are supposed to use the "randrange" function from the "random" package.

Personal bankruptcy : Under the Bankruptcy Code after the reform act, what must Janet do before filing a petition for relief under Chapter 7?

Develop a module named fishing : Develop a module named fishing (file "fishing.py"). This module should import the module "fish_species", so you can use the class definitions from

Liable for the tort committed by watts : Under what doctrine discussed in this chapter might Buy-Mart be held liable for the tort committed by Watts?

How does anger regulate aggression : How does anger regulate aggression? Describe the differences in anger management between under controlled and overcontrolled offenders.

What is an example of a company that leverages : What is an example of a company that leverages its logistics and developed it into a competitive advantage.

User Account

All Pages