Here is an excerpt from our textbook as to distribution of property to unsecured creditors:
Domestic support obligations
Administrative expenses
Taxes and Fines
Claims Resulting from Driving While Intoxicated
Here is the money available for distribution to creditors: $140,000
Here are amounts claimed by creditors:
Internal revenue service $30,000
Child support $50,000
Drunk driving judgment, money owed to victim $70,000
Lawyers and accountants fees to administer the bankruptcy $20,000
Required: How much will the drunk driving victim receive?
$50,000
$70,000
$40,000
$30,000