Assignment: Case Problem Analysis 15.1: Identifying the Facts & Issues

In this case, the debtor filed a Chapter ____ bankruptcy

7

Student loans generally ____________ dischargeable in bankruptcy.

ARE NOT

. If Todd had to complete the means test, the Court would deduct _________________________ living expenses from his monthly disposable income to decide whether Todd could pay any of his ___________________________ debt.

FORMULA BASED UNSECURED

In this situation, given Todd's income, it __________________ likely that he would have his case dismissed or converted to a Chapter 13.

IS

Todd Campbell was an executive for a large corporation. His base salary, which was calculated on a formula tied to the company income, averaged $338,500 over a five-year period. Because of a recent divorce (within the last year), Todd owed his ex-wife $4,350 per month in spousal support. Todd owed back taxes to the IRS of $210,000, which required him to pay $2,800 per month in addition to current tax payments. Todd owed $150,000 in student loan debt. As a result of his divorce, Todd became the sole owner of his home, which was worth $900,000 and had a $600,000 mortgage on it with Bank of the US. The homestead exemption in his state is $160,000.

Liquidation Proceedings

Under this type of bankruptcy, the debtor is required to file a list of secured and unsecured creditors as well as several other lists, known as

SCHEDULES

According to the homestead exemption as described above, Todd ______________________ be able to claim a homestead exemption for the full amount of the equity in his home.

SHOULD NOT

The debtor in this case is

Todd Campbell

Under the federal exemptions, Todd normally ____________ be allowed some portion of equity in his home.

WOULD

. If the median income in Todd's state for a single person was $47,000, there _____________________ a presumption of bankruptcy abuse by Todd.

WOULD BE

In this case, Todd's payments to his wife generally _____________ be dischargeable in bankruptcy.

WOULD NOT