Suppose a friend of yours is insolvent and asks for your assistance in choosing between filing for a straight bankruptcy under Chapter 7 and filing under Chapter 13. Your friend has multiple debts including a mortgage to Chase Bank, student loan debt, unpaid taxes, child support payments, a loan from GMAC for her car, a $8,000 loan she incurred for a bike that she bought last month, and credit card debt.
Based on the scenario, answer each of the following questions as completely as possible:
Again, considering your friend, what types of debts would not be dischargeable in bankruptcy? Assume your friend decides to file Chapter 7 bankruptcy, but does not have enough assets to satisfy all of her debts. Which creditors would have priority?
