Brenda had health insurance that paid 80 percent of hospitalizations a

QUESTION

Brenda had health insurance that paid 80 percent of hospitalizations and other costs. Brenda was sick with cancer for two years, requiring that she have two surgeries, chemotherapy, and radiation therapy.

Brenda was unable to work for a good part of that time, but in 2011 she was healthy and returned to work as a physician’s assistant. She was unable to keep up payments on the medical bills she had incurred and sought Chapter 7 bankruptcy. Brenda, however, likely was not allowed to file under Chapter 7 and instead was forced to file under Chapter 13.
Indicate whether the statement is true or false.

ANSWER

Answer: TRUE
Explanation: Brenda’s job as a physician’s assistant almost certainly pays her enough that she did not quality for Chapter 7, in which she would have been able to cancel her debts, but instead required her to file Chapter 13, which means she had to establish a repayment plan to pay off her creditors.