[parndepu]

1.) Your friend graduates from the MBA and shortly thereafter is hit by a car, incurring $100,000.00 in medical expenses. Your friend’s only asset of significant value is a 2015 Kia Optima, valued at approximately $20,000.00. Your friend tells you they are considering filing bankruptcy and asks your advice because they know you have a general understanding of bankruptcy law. What would you tell your friend?

[Andyred04]

Sue the driver of the car that hit them for the medical expenses. No need to file bankruptcy.

FAR 80
REG 87
BEC 87
AUD 96

Primarily Gleim, supplemented with Ninja Notes & Ninja MCQs

Missouri CPA as of January, 2017

FAR: 80 (Gleim, Ninja Notes, Ninja MCQs)
REG: 87 (Gleim, Ninja Notes, Ninja MCQs)
BEC: 87 (Gleim, Ninja Notes, Ninja MCQs)
AUD: 8/27/16

PA Candidate

[If I can, u can too!]

it'd be best to post your question along with the answer. below are the Distribution priority for Debtor's estate in Chapter 7 bankruptcy. SAG WEG CTI

I guess bankruptcy filing is an option but your friend needs to be aware that he still needs to pay “Administrative expenses of bankruptcy proceeding”?

Secured claimants (up to the value of the collateral. If beyond, gets proportional. Perfected & PMSI are considered secured claimants)
Support obligation to spouse and children
Administrative expenses of bankruptcy proceeding (court fees/lawyer fees)
Gap creditors (creditors during the wait period after petition filing)
Wages (up to $12,475 earned 180 days prior to filing)
Employee benefit plan contribution (up to $12,475 for each employee 180 days prior to filing, reduced by Wage claims)
Grain farmers' and fisherman's claims
Consumer deposits for goods paid (up to $2,775). You buy a furniture and made a $3,000 deposit.
Taxes
Injury claims caused by intoxicated driving
General unsecured creditors

If I can do it, you can do it too!

Certified CPA, 2016

Licensed CPA since Apr 16
Order in sequence of passing
FAR-71,71,79
BEC-80
REG-72,77
AUD-56,72,72,72,80! Thank you, thank you, thank you Lord!
FAR/BEC/AUD: Becker & Yaeger lectures (Wiley & Ninja MCQs). REG: Becker lectures (Ninja MCQs).

[Author]

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