Mary went for a consultation about a surgical procedure. When Robert met with her, he wore a name tag that identified him as a doctor and was addressed as “doctor” by the nurse. Robert then examined Marty, touching her stomach and showing her where the incision would be made. Robert was not a doctor, he was the office manager. Although the doctor actually performed the surgery on Mary, Robert was present. The doctor left a tube in Mary’s body at the site of the incision. A jury awarded Mary $275,000 in damages in a suit against Robert.
Robert borrowed $20,500 from a federal student loan program to finance his office management school. His salary at the doctor’s office was $12,500. Robert still lived at home with his mother, free of charge. After setting aside $50 a month in savings that included $233 for a new car and $50 for tools from Home Depot, his disposable income was $125 per month.
Robert wants to file a Chapter 7 bankruptcy petition. Why is Chapter 7 preferable in his situation to Chapter 11 or Chapter 13? Is this judgment dischargeable in bankruptcy court? Robert wants to ask the bankruptcy court to discharge the debts owed for his education. Should the court do so?
Make sure to review the rubric before beginning your assignment.
In Chapter 7 filing of bankruptcy, the debtor’s assets are sold off for repayment to creditors. On the other hand, in chapter 11, negotiations are performed to alter the terms of the loan without sell-off. Additionally, chapter 13, applies to debtors with regular income.
In the given scenario, chapter 7 filing is appropriate as Robert is not having much regular income and judgement is already against him. This judgement is dischargeable in bankruptcy court. However, Student loans are generally not dischargeable in a bankruptcy.
Mary went for a consultation about a surgical procedure. When Robert met with her, he wore a name tag that identified...
Elmer and Mary Miller, both 35 years old, live with their five children in the main house on the family farmstead in one of the largest Amish settlements in Indiana. Aaron and Annie Schlabach, aged 68 and 70, live in the attached grandparents’ cottage. Mary is the youngest of their eight children, and when she married, she and Elmer moved into the grandparents’ cottage with the intention that Elmer would take over the farm when Aaron wanted to retire. Eight...
Elmer and Mary Miller, both 35 years old, liv e with their five children in the main house on the family farmstead in one of th e largest Amish settlements in Indiana. Aaron and Annie Schlabach, aged 68 and 70, live in the attached grandparents’ cottage. Mary is the youngest of their ei ght children, and when she married, she and Elmer moved into the grandparents’ cottage with the intention that Elmer would take over the farm when Aaron wanted...