Benson filed for bankruptcy but his estate was insufficient to pay all taxes owed. One of his debts was obtaining property from Anderson by falsely claiming to be solvent when he was actually insolvent. Bradley filed for Chapter 7 bankruptcy owing wages to four employees. There was enough in the estate to pay administrative costs and the employees, but nothing left for other creditors. Jessica sold goods to Stacy and retained a security interest, but two months later Stacy filed for Chapter 7 bankruptcy still owing Jessica $2,000.

1. Benson goes into bankruptcy. His estate is not sufficient to
ASSIGNMENT1. a. Benson goes into bankruptcy. His estate is not sufficient to pay all taxes
owed. Explain whether Benson’s taxes are discharged by the proceedings.b. Benson
obtained property from Anderson on credit by representing that he was solvent when in
fact he knew he was insolvent. Explain whether Benson’s debt to Anderson is discharged by
Benson’s discharge in bankruptcy.2. Bradley goes into bankruptcy under Chapter 7 owing
$25,000 as wages to his four employees. There is enough in his estate to pay all costs of
administration and enough to pay his employees, but nothing will be left for general
creditors. Do the employees take all the estate? If so, under what conditions? If the general
creditors received nothing, would these debts be discharged?3. Jessica sold goods to Stacy
for $2,500 and retained a security interest in them. Two months later, Stacy filed a
voluntary petition in bankruptcy under Chapter 7. At this time, Stacy still owed Jessica
$2,000 for the pur- chase price of the goods, the value of which was $1,500.a. May the
trustee invalidate Jessica’s security interest? If so, under what provision?b. If the security
interest is invalidated, what is Jessica’s status in the bankruptcy proceeding?c. If the
security interest is not invalidated, what is Jessica’s status in the bankruptcy proceeding?4.
A debtor went through bankruptcy under Chapter 7 and received his discharge. Which of
the following debts were completely discharged, and which will remain as future debts
against him?a. A claim of $9,000 for wages earned within five months immediately prior to
bankruptcy.b. A judgment of $3,000 against the debtor for breach of contract.c. $1,000 for
domestic support obligations.d. A judgment of $4,000 for injuries received because of the
debtor’s negligent operation of an automobile.5. Rosinoff and his wife, who were business
partners, entered bankruptcy. A creditor, Baldwin, objected to their discharge in
bankruptcy on the grounds thata. the partners had obtained credit from Baldwin on the
basis of a false financial statement;b. the partners had failed to keep books of account and
records from which their financial condition could be ascertained; andc. Rosinoff had falsely
sworn that he had taken $70 from the partnership account when the amount he took was
actually $700. Were the debtors entitled to a discharge? Why or why not?