Exam 11: Schedules AB: Personal Property and C: Exemptions

Can a homeowner association initiate foreclosure proceedings?

Cary has her license suspended due to an outstanding judgment from a personal injury case. Will filing for bankruptcy result in Cary reinstating her driver's license?

Due to a job loss, Gail filed for bankruptcy. At the 341 Meeting of Creditors, there seemed to be no issues, and her attorney told her to expect the Order of Discharge in a few months, that everything was okay. One hundred seventy-eight days later, Gail received a check for $10,000 from a life insurance company. Unbeknownst to her, her long-lost aunt passed away and had her listed as a beneficiary on a life insurance policy. Is the trustee entitled to the funds?

John has filed for Chapter 7 bankruptcy. He listed the following secured debts: His Ford truck worth $13,200 with an outstanding loan of $10,000, and his wife's car that is worth $8,500 and has an outstanding loan of $9,400. John's wife did not file for bankruptcy, but he is on the promissory note. John also transferred his 2006 Ford F150 with 217,000 miles to his son. Applying the exemption amounts in your state, what would you advise John.

Because of public policy reasons and to avoid an expense for the county and/or state, cemetery lots are exempt in Chapter 7 bankruptcy.

What options does Bobby have moving forward?

Because a cemetery plot prevents an expense to the city in funeral services to a resident, cemetery plots are exempt property.

John owns a small fencing company. He doesn't have a warehouse to store materials and his equipment is several years old and of little value. Since John is filing for Chapter 7 and his business is a separate corporation with no debt, he doesn't have to list his business in the schedules.

Bobby's 341 Meeting of Creditors for his Chapter 7 bankruptcy is scheduled for the end of this month. However, ten days ago, Bobby received the proceeds as the beneficiary of a life insurance policy. His uncle, who he hadn't spoken to in years, died unexpectedly. Bobby didn't even know about the life insurance policy until he was called by the agent that sold his uncle the policy. Can Bobby now wipe out all his debt with the bankruptcy and keep the funds?

A HELOC loan can be eliminated with Chapter 7.

Mary, the debtor emailed you her Bankruptcy Intake. In reviewing the intake, you notice she listed the value of her bedroom furniture at $6,000. What steps should you take?

A car lease is listed on Schedule A/B and the equity is exempted on Schedule

Ten years earlier, as a graduation gift, Tom received a $500 certificate of deposit. Now, the amount in the cd has increased to over $3,000. Is the cd protected in bankruptcy?

Wedding rings are exempt in Chapter 7 cases.