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) After selling his house, Jake will pay the creditors on a pro-rata basis.
B) After selling his house, Jake will pay whomsoever he chooses.
C) After selling his house, Jake will pay the creditors he to which owes the maximum amount of money.
D) After selling his house, Jake will pay the creditors to which he owes the least amount of money.