7. Result: D is the correct answer.
12. Result: The father and ex-wife were unsecured creditors who, as a class, come last on the priority list. The court granted their request not to discharge their loans on the grounds that Milbank had acted in bad faith.
2. Look on the Web for your state’s rules on exempt property. Compared with other jurisdictions, is your state generous or stingy with exemptions? What do you think is a fair exemption?