BUSLAW Chapter 15

Todd's equity in his house would be _______

$75,000

In this case, the debtor filed a Chapter __________ bankruptcy

7

Jason's consumer debt is beyond what he can now afford to pay; he is having difficulty making the minimum payments. The credit card companies are calling daily asking him when he is going to pay. Which of the following goals of bankruptcy is applicable to Jason's situation?

To protect the debtor by giving him a fresh start without creditors' claims

The debtor in this case is ____________

Todd Campbell

Bartell contracts with LaRonda to remodel and retile a bathroom. LaRonda finishes the job and gives Bartell a bill for $14,000 for labor and materials. Bartell refuses to pay. In this case, LaRonda may seek:

a mechanic's lien

Dina and Michelle buy a house together and sign a document to borrow some of the money for the house. The contract provides that they will pay a single rate of interest for the first five years of the loan, and then the rate will vary depending on a specific index rate. This type of contract is:

an adjustable-rate mortgage

Rick agrees to customize Melissa's wedding ring. The cost is $10,000. After the job is complete, Melissa refuses to pay. As long as Rick retains possession of the ring, he may seek to recover the cost of the labor with:

an artisan's lien

Michael opens an upscale men's clothing store. He borrows money to rent space and buys inventory on credit. Unfortunately, business is weak. He promises his creditors that he will be able to pay them after the next season. Business does not improve, and two years later, his creditors seek to force him into Chapter 7 bankruptcy through:

an involuntary bankruptcy.

Student loans generally _____________ dischargeable in bankruptcy.

are not

To start his business, Neil borrows money from every source available to him, including all his credit cards and a line of credit at his bank. The business fails, and Neil files a voluntary Chapter 7 petition in good faith to discharge his debts. He returns to work as an attorney, where he makes over twice the median family income in his state. Neil's debts will most likely:

be paid, at least in part, after his case is converted to a Chapter 13 repayment plan.

Jared works on the assembly line at a manufacturing plant. At the beginning of the year, Jared bought a house and moved out of his apartment. To furnish his house, he bought lots of new furniture. He also purchased many maintenance supplies and decorations. By the end of the year, Jared realized that he was going to have to declare bankruptcy. Jared is an example of a:

consumer-debtor

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

This amount of equity_________ lower than the homestead limit as described.

is

Rosie hired Donald to perform repairs on some farm equipment she owned. Donald allowed Rosie to have the equipment before she paid for the repairs. When it became obvious that Rosie was not going to pay him, Donald successfully sued her for breach of contract. Rosie did not pay the judgment, and the tractor was destroyed in a fire. Rosie has no other valuable property that can be seized to satisfy the judgment, but she does have a job. Donald:

may seek an order of garnishment.

Donald is buying a house and obtains a loan from the lender. The document that Donald signs giving the lender an interest in Donald's house as security for a debt is called a

mortgage

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

In this case, Todd's income ________ higher than the state median.

was not

Jason is a small-business owner. He has a dry cleaning business. One year, Jason has to replace nearly all of his equipment, and the rent on his building increases. Jason borrows money to cover his expenses. Business is slow, however, and Jason eventually realizes he must declare bankruptcy. Neither Jason nor his creditor wants the expense and hassle of going to court. They can settle their creditor-debtor relations outside of court through a:

workout

Todd _____________ receive the entire amount of equity in his home.

would

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

Because of this, there ____________ a presumption of bankruptcy abuse.

would not be

Eric brings a valuable watch to Sherry's clock shop for repairs. One of Sherry's assistants mistakenly allows Eric to take the watch without paying for the repairs. Sherry sues Eric to recover payment for the repairs, and she asks the court to direct the sheriff to seize and take custody of the watch before the trial. Sherry is seeking a:

writ of attachment