Chapter30 - CHAPTER 30 BANKRUPTCY LAW ANSWERS TO QUESTIONS...

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235 C HAPTER 30 B ANKRUPTCY L AW A NSWERS TO Q UESTIONS AT THE E NDS OF THE C ASES C ASE 30.1 Q UESTIONS (P AGE 615) 1A. Is it fair for the court to treat retirement contributions differently depending on a person’s age? If Hebbring had been much older, it seems more likely that the court would have ruled in her favor. Other circumstances that influenced the court’s decision included her employment situation and her general financial situation. Other factors that might have affected the outcome in this case if they had been different include her health and whether she had dependents. 2A. Is it likely to have made a difference to the result in this case if the debtor’s retirement contributions were automatically and electronically deducted from her pay? No. This seems unlikely because the court made no comment on the means by which a debtor’s income is ―spent,‖ nor does there seem to be any attribute to automatic, electronic payments that would make this relevant. Factors that might have affected the outcome in this case include those listed in the opinion and in the answer to the other question accompanying this case. C ASE 30.2 (P AGE 623) T HE E THICAL D IMENSION Should a debtor be required to attempt to negotiate a repayment plan with a creditor to demonstrate good faith? Why or why not? Educational Credit argued in part that the good faith requirement obligated Mosley to attempt to negotiate a repayment plan under the ―Income Contingent Repayment Program.‖ The court disagreed. ―While a debtor's effort to negotiate a repayment plan certainly demonstrates good faith, courts have rejected a per se rule that a debtor cannot show good faith where he or she has not enrolled in the Income Contingent Repayment Program. . . . In this instance, it is questionable whether Mosley even knew about alternative repayment options, and, in light of his dire living conditions and persistent inability to obtain steady work, the bankruptcy court had sufficient evidence from which to conclude that these
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236 UNIT SIX: CREDITORS ’ RIGHTS AND BANKRUP TCY options would not have provided M osley a realistic solution to his inability to pay.‖ The court also cited Mosley’s attempts to find work.
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CHAPTER 30: BANKRUPTCY LAW 237 T HE G LOBAL D IMENSION If this debtor were to relocate to a country with a lower cost of living than the United States, should his change in circumstances be a ground for revoking the discharge? Explain your answer. No, this would not constitute a ground for a revocation of the debtor’s discharge. A discharge may be revoked within a year if it is discovered that the debtor acted fraudulently or dishonestly during the bankruptcy proceeding, but this question does not indicate either circumstance.
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