Ali Declares Personal Bankruptcy for the First Time

Multiple Choice

Ali declares personal bankruptcy for the first time. Three months after the bankruptcy proceedings begin Ali gets a job and he is earning $3,014 per month and he is a single. The threshold level that year for a single person is $2,014. As a result Ali

A) will have to pay $1,507 per month to the trustee to be used for creditors' claims
B) will have to pay $1,000 per month to the trustee to be used for creditors' claims
C) will have to pay $500 per month to the trustee to be used for creditors' claims
D) will be able to keep all his monthly income himself
E) will only have to pay some money to the trustee for the next 6 months until he is discharged from bankruptcy