Larson, an unemployed carpenter, filed for voluntary bankruptcy on August 14, Year 3. Larson's liabilities are listed below.
Credit card charges due March 2, Year 3
$3,000
Bank loan incurred June Year 3
5,000
Medical expenses incurred June Year 1
7,000
Alimony due during Year 1
1,000
Under the provisions of Chapter 7 of the Federal Bankruptcy Code, Larson's discharge will not apply to the unpaid
A. Medical expenses.
B. Credit card charges.
C. Alimony.
D. Bank loan.

Under the provisions of Chapter 7 of the Federal Bankruptcy Code, Larson's discharge will not apply to the unpaid alimony

Explanation:

When an individual who resides in the United States; and also performs his business or owns properties in the united states files for bankruptcy chapter 7 through the federal courts, he is discharged of most of his liability including the unsecured debts he owes.

Although the provision of the law exempts some propert to guarantee his survival, the extent of exemption is defined specific to the state he is in.

Cost that won't be discharged off in spite of a chapter 7 proceedings include payment for child support, spousal support or other disputed costs arising from a divorce process.

C. Alimony

Explanation:

Bankruptcy is a phenomenon that offers debtors who are overwhelmed a chance to secure a fresh start through liquidation (Chapter 7 of the Federal Bankruptcy Code).

When this happens, the bankruptcy court is said to discharge the debts incurred by the individual, and creditors will lose the ability to take action against the debtor, such as collection of debt owed or the repossession of properties owned by the debtor.

However, there are debts that cannot be discharged by the court and which the individual filing for bankruptcy must fulfill. There are lists of categories of debts that can not be discharged and the most common among this categories are Alimony and child support.

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