Lowell Recently Graduated from College with a Degree in Business

Essay

Lowell recently graduated from college with a degree in business administration, but has been unable to find a job. He decided to file a Chapter 7 petition with the Bankruptcy Court. He has the following assets:
a. $1,200 in equity in a new car which he purchased with a loan from the bank.
b. $5,000 in equity in his residence, a condominium secured by a mortgage.
c. $100 a week in unemployment benefits after being laid off from his job as a burgermaker at a local restaurant.
d. $750 in business administration books including a hardly used copy of Mann and Roberts, Business Law and the Regulation of Business.
e. a $1,000 retainer for his teeth prescribed by his orthodontist.
His debts are as follows:
a. $10,000 in student loans.
b. $20,000 to the bank for his car, which is secured by the car.
c. $5,000 in unsecured credit card debts.
Under federal exemptions, what can he keep? What will each of the creditors receive? Explain.