Lesson: Bankruptcy and Insolvency - Practice Questions

In this lesson, Nick Palazzolo, CPA, dives into the intricacies of bankruptcy and insolvency with a series of practice questions that cover what types of debts can be discharged under Chapter 7 of the federal bankruptcy code. He walks you through the thought process of analyzing different types of debt, such as utility bills, child support, alimony, and federal taxes, reinforcing that some obligations remain despite bankruptcy. The lesson then shifts to assessing an individual's solvency for federal tax purposes, clarifying the distinction between the fair market value of assets and non-dischargeable liabilities. As Nick breaks down the nuts and bolts of each question, he ensures that the key concepts are thoroughly understood, and he encourages a meticulous approach to parsing the details of each potential answer, culminating in a strong encouragement to practice relentlessly for mastery.