In an equal footing state, property owner O owes the following: 160,000 - Mortgage Lender, recorded January 1, 2014 40,000 - Foundation company, began construction December 30, 2012 50,000 - Framing company, did framing January 31, 2013 Property owner O has sold the property and there is 160,000 left to be distributed. How should this amount be distributed?
A) 160/250, 40/250, and 50/250 x 160,000
B) 40/250 and 50/250 x 160,000 with mortgage company taking nothing
C) 160,000 to the mortgage lender
D) None of the above
Question 2
Which of the following debts is not dischargeable in bankruptcy?
A) judgments based on negligence
B) judgments based on breach of contract
C) judgments for willful and malicious injuries
D) judgments in which the creditors would receive no distribution
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