Discussion Post: Michone Lost Her Job And Ended Up Deep In Debt
Michone lost her job and ended up deep in debt after she was arrested for causing a car accident while she was drinking and driving. The victim in the car accident sued Michone and was awarded $40,000 in damages. Michone declared bankruptcy before she paid the victim the amount of the judgement.
A couple of years before Michone declared bankruptcy, she purchased a house with a mortgage of $500,000. At the time of her bankruptcy, the house sold for $400,000. In addition, Michone was behind in her property taxes in the amount of $8,000. The attorney's fees for the bankruptcy were $4,000. She also owed back child support in the amount of $5,000.
List Michone's creditors and the priority of their claims. In addition, if Michone only had $10,000 for the creditors listed in this discussion forum, how much would each of the creditors receive?
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.