ch26 - Chapter 26 BANKRUPTCY Practice Test 1. Mark Milbank...

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Chapter 26 BANKRUPTCY Practice Test 1. Mark Milbank built custom furniture in Port Chester, New York. His business was unsuccessful, and he repeatedly borrowed money from his wife and her father. He promised that the loans would enable him to spend more time with his family. Instead, he spent more time in bed with his next-door neighbor. After the divorce, his ex-wife and her father demanded repayment of the loans. When Milbank filed under Chapter 13, his ex-wife and her father asked the court not to discharge Milbank’s debts on the grounds that he had acted in bad faith toward them. Should the bankruptcy court discharge Milbank’s loans? No. The court refused to discharge the loans because the debtor had acted in bad faith. He pretended to his then wife and father-in-law that he was making an effort to stabilize his marriage, when in fact he was rending it asunder. IN RE Milbank, 1 Banker 150 (Bankr. S.D.N.Y. 1979). 3. James Hartley, the owner of an auto parts store, told an employee, Rickey D. Jones, to clean and paint some tires in the basement. Highly flammable gasoline fumes accumulated in the poorly ventilated space. Hartley threw a firecracker into the basement, as a joke, intending only to startle Jones. Sparks from the firecracker caused an explosion and fire that severely burned Jones. He filed a
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This note was uploaded on 06/17/2011 for the course BUSINESS A ACG2071 taught by Professor Danso during the Spring '09 term at Palm Beach Community College.

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ch26 - Chapter 26 BANKRUPTCY Practice Test 1. Mark Milbank...

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