1. Outline the order of priority of payment to preferred creditors in a bankruptcy.
2. Explain the duties of an undischarged bankrupt.
3. What is the effect of a discharge on a bankrupt debtor’s obligation to pay his or her creditors?
4. Why is an insolvent person not necessarily a bankrupt?
5. Alexander was insolvent and attempted to hide from his creditors his only asset, a valuable painting worth $10,000. Assuming that he is two months in arrears on his apartment rent of $1,000 per month, owes his housekeeper back wages of $1,000 for one month’s work, and owes unsecured creditors $12,000, what would the unsecured creditors receive in cents on the dollar if the trustees’ fees and the costs of the bankruptcy were $2,000?
