Rules for repeated filings for bankruptcy:
Some debtors are attracted by bankruptcy and like the fresh start. Therefore, under chapter 7 or 11, any debtor has been discharged they cannot receive further discharge for minimum 8 years under Chapter 7 after prior filing. Under chapter 13, a debtor received prior discharge they cannot receive discharge (most cases) for minimum 6 years under Chapter 7.
The above rules for repeated filings are more lenient. Government should look into it and take steps to the debtors who purposively avail loan make them bankrupt. Debtor avail more loan and credit, enjoy their life, and filed for bankruptcy. If it is approved by the judge of bankruptcy, there is no need to pay the creditors. Hence, the government should restrict the rules and exemptions on bankruptcy.
State's rules on exempt on home towards bankruptcy:
The exemption rules are varying from state to state under the bankruptcy. Some states allow unlimited exemption on their home and some other states allowed only low such as $5,000 for their home.
This kind of exemption within the same country is unfair. Even though the unlimited exemptions on house is not acceptable when the person keeps a home worth millions while the creditors remain unpaid.
How some states restrict the exemption to $5,000 is also unfair. Hence, the state federal should fix the exemption as fair value. It should not affect the creditor as well as the debtor.
Bankruptcy may be thrown in the street, because many people use the bankruptcy for unfair purpose. People avail more loan and credit, enjoy their life, and filed for bankruptcy. If it is approved by the judge of bankruptcy, there is no need to pay the creditors. Hence, the government should restrict the rules and exemptions on bankruptcy.
The debtors under the chapter 13 only may appear before the bankruptcy judge for hearing.
In the bankruptcy proceedings, D's creditors have a chance to voice objection to debtors plan. Hence, option
D's debtors need not file an involuntary petition. Hence, option "a" is wrong.
D's unsecure creditors would not be worse off than if D had filed a petition under chapter 7. Hence, option b is wrong.
All the debits are not discharged after the court approves his plan. Hence, option C is wrong.