Joan's bankruptcy proceeding consists of the following debts: back taxes of $10,000,credit card debt of $25,000,home utility bills of $300,and a $10,000 car loan.Also,there are bankruptcy administrative expenses of $1,000.Discuss the order in which these debts will be settled.

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Shelbiuna Trevillion · Accepted Answer

Final Answer : Firstly,the secured car loan will be paid through the sale of the car or the creditor may take the car to satisfy the debt.The $1,000 administrative expense will be paid next,followed by the $300 of utility bills,the $10,000 of back taxes,and the $25,000 of credit card debt.

Joan's bankruptcy proceeding consists of the following debts: back taxes of $10,000,credit card debt of $25,000,home utility bills of $300,and a $10,000 car loan.Also,there are bankruptcy administrative expenses of $1,000.Discuss the order in which these debts will be settled.

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