Jane Leeves declared voluntary Chapter 7 bankruptcy. The trustee included the following property in her bankruptcy estate: • Jan
e’s wedding ring • Jane’s computer for her consulting business that she operated from her home • Jane’s car payment from a client in the amount of $5,000 that was received 91 days after Jane filed bankruptcy After collecting all of Jane’s assets, the bankruptcy trustee was trying to decide how to distribute the assets. Jane had the following creditors: • Mortgage company—owed $187,000 (the trustee sold Jane’s house for $190,000) • Expenses of the bankruptcy—$3,000 • Federal income taxes—$11,000 • Utility bills—$1,000 • Office supply store open account—$1,000 The trustee had $11,500 in cash, including the $3,000 additional cash left from the sale of the house after the mortgage company was paid. How should the trusteedistributethismoney?Whatiftheamount were $14,500; how should that be distributed?
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