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[Consumer Debt] Isabel Had Not Been Keeping Up with Her

Question 78

Multiple Choice

[Consumer Debt] Isabel had not been keeping up with her spending and bought several expensive items. Between numerous credit cards and some unsecured loans, she had a total of 14 creditors. All her debt was consumer debt, and Isabel really wished that she had not put all those new clothes on her credit card. Although Isabel was struggling, she did not want to file for bankruptcy because she did not want a bad credit score. However, three of her credit card companies signed and filed an involuntary bankruptcy petition against her under Chapter 7. Isabel is unsure about how to proceed. While she is several months behind on a number of payments, including alimony payments she believes were unfairly awarded to her ex-husband, she does not particularly want to go bankrupt. She believes that the creditors have been unfair in not allowing her additional time in which to pay. On the other hand, she would really like to be rid of her excessive debt and stop collection efforts on the part of her ex-husband.
-If Isabel convinces the judge that the creditors have filed the involuntary bankruptcy frivolously, which of the following is true regarding what amounts, if any, the court may force the creditors to pay?


A) The court may award attorney costs, fees of the debtor, and punitive damages.
B) The court may award attorney costs and fees of the debtor, but not punitive damages.
C) The court may award fees of the debtor, but not attorney costs or punitive damages.
D) The court may award punitive damages, but not attorney costs or fees of the debtor.
E) The judge may dismiss the involuntary bankruptcy petition, but no other relief is available.

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