Question

3. Kelvin Company has $5, 000 in its checking account, but no other assets. Kelvin owes $4000 to a credit union, $3,000 to the landlord, $2500 to the construction company that remolded its offices a year ago and $1,000 to a metal supplier. On April 1, 2018 Kelvin paid $ 1,000 to the metal supplier. On August 1, 2018, Kelvin pays $2500 to the construction company, which left $1,500 for the $7,000 debt to the landlord and the credit union. On October 1, 2018 Kelvin filed for chapter 7 protection. Nilda Martinez ESQ was appointed as the chapter 7 trustee. Discuss what action if any Ms. Martinez is likely to take with respect to the payments.

Answer 1

Soluo nths case kelvin (ompa0 wh fave Sooo and no other a/>se ts C edit union-,8 400D a) Land loyd - 8 3000 ComOant-BaSoo u) netal Supplie looD the total Amount is loSoo kelvin paid to theetal Suppler and also to tsuchion Compan(aSoot lo0o) 35oo ow his debt s700o qssest is gisoo He flled for chaptei protection rts.Ποί tineả 's 9egulved to do,'s sell off his assets and to The Comeditors Here s.taitinez has assests on cow 3 isoo and debts cooth g 70oD out oP chich 3 uoov ' to the land loid s to The Cnedit union and B 30oD

-) unde' Chapte 7 all debts ,ncu'ed before คิ",ng for petition ae Dischaqeable debbs So in this Cae. both landloid due and Cnedit Ioan Rave incuved berore fn:29oe Petīt,onSo both a dischargable debts kelvin Compa coilt be dischargable of all is dues b filling this petition and Cedi union Shecan have a talk coith both of tRem and Can aqree to a SeHlement os she one of tRem and not tRe oties - s Hastine Can do So cohat she deems after Paving a talk coith both of tem and qqmeeging to an amount nce kelvin mpay doesn't hoie ay。 hom Exempt assests. and tRem ard Sell to he. ant take P off the due