Jake, a Businessman, Filed for Bankruptcy and Was Declared Insolvent

Multiple Choice

Jake, a businessman, filed for bankruptcy and was declared insolvent by the courts. He owed $15,000 each to two creditors and $5,000 each to two others. The courts also decreed that he should sell his house worth $30,000, to pay his debts. Which of the following is legally permissible in this scenario?

A) Jake is entitled to sell his house and pay the creditors on a pro-rata basis.
B) Jake is entitled to sell his house and pay whomsoever he chooses.
C) Jake is entitled to sell his house and pay the creditors he owes the maximum amount of money to.
D) Jake is entitled to sell his house and pay the creditors he owes the least amount of money to.