Cengage Advantage Books: Fundamentals of Business Law 9th Edition by Roger LeRoy Miller

Exercise 21

Video Question To watch this chapter's video, Field of Dreams, go to www.cengagebrain.com. Register the access code that came with your new book or log in to your existing account. Select the link for the "Business Law Digital Video Library Online Access" or "Business Law CourseMate." Click on "Complete Video List," view Video 73, and then answer the following questions:
1 Before this scene, the movie makes clear that Ray (Kevin Costner) is unable to pay his bills, but he has not filed a voluntary petition for bankruptcy. What would be required for Ray's creditors to force him into an involuntary bankruptcy?
2 If Ray did file a voluntary petition for a Chapter 7 bankruptcy, what exemptions might protect him from "losing everything" and being evicted, as the man indicated in this scene? How much equity in the farm home could Ray claim as exempt if he filed the petition?
3 What are the requirements for Ray to qualify as a family farmer under Chapter 12 of the Bankruptcy Code?
4 How would the results of a Chapter 12 bankruptcy differ from those of a Chapter 7 bankruptcy for Ray?