Should the trailer be exempt from the bankruptcy estate

Assignment Help Financial Management
Reference no: EM13934348

In 2008 Virgil Hurd was kicked out of his home by his ex-wife. At that time he moved into his horse trailer (the “Trailer”) to keep warm. The Trailer is twenty feet long and six feet wide. Virgil gets electricity for the Trailer from a socket and water from a barrel with a pump. He receives his mail at the land where the Trailer is parked. Since January of 2010, Virgil spends approximately 70 percent of his time at his girlfriend’s house. In addition using the Trailer as a place to sleep, Virgil also uses it for transporting his horses and his girlfriend’s horses. In April of 2010, he filed a voluntary petition for relief under Chapter 7 in the United States Bankruptcy Court for Western District of Missouri. In his schedule of exemptions, he listed the entire $3,000 value of the Trailer as exempt under a Missouri statute, which exempts any mobile home used as the principal residence that does not exceed $5,000 in value. The term mobile home in not defined in that statute. The Chapter 7 trustee objects to Virgil’s claim of a Missouri exemption in a horse trailer used as his living quarters. The trustee contends that the Trailer was not Virgil’s principal residence during the six- to twelve-month period before filing his bankruptcy petition, and that the Trailer does not qualify as a “mobile home” under the Missouri statute. Should the Trailer be exempt from the bankruptcy estate?

Reference no: EM13934348

Questions Cloud

Start-up cost of the project to get the true-total cost : Southern Alliance Company needs to raise $22 million to start a new project. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 65 percent common stock, 10 percent preferred stock, a..
Calculate the company cost of capital : The market value of Cable Company's equity is $60 million, and the market value of its risk-free debt is $40 million. If the required rate of return on the equity is 15% and that on the debt is 5%, calculate the company's cost of capital. (Assume no ..
Consider the mean-variance portfolio optimization : Consider the mean-variance portfolio optimization with n risky assets, but no short sales. Write down the first order optimality conditions of the problem. Can you characterize the set of efficient portfolio?
What is the firms operating cash flow : An all-equity firm has net income of $28,300, depreciation of $7,500, and taxes of $2,050. What is the firm's operating cash flow?
Should the trailer be exempt from the bankruptcy estate : In 2008 Virgil Hurd was kicked out of his home by his ex-wife. At that time he moved into his horse trailer (the “Trailer”) to keep warm. The Trailer is twenty feet long and six feet wide. Virgil gets electricity for the Trailer from a socket and wat..
How does this event affect the demand for money : You put money into an account that earns a 5 percent nominal interest rate. Theinflation rate is 3 percent, and your marginal tax rate is 20 percent. What is your after-tax real rate of interest? Suppose that changes in bank regulations expand the av..
Relative purchasing power parity-inflation rate : Currently, you can exchange $1 for £0.53. Assume that the average inflation rate in the U.S. over the next four years will be 4% annually as compared to 5% in the U.K. Based on relative purchasing power parity, you should expect the _____ over the ne..
What is the bank''s cost of preferred stock : Holdup Bank has an issue of preferred stock with a $8 stated dividend that just sold for $95 per share. What is the bank's cost of preferred stock? The price of any asset is the present value of future cash flows. The preferred stock has a constant d..
Sale of one more unit have on the operating cash flow : The tax rate is 35 percent. What effect would the sale of one more unit have on the operating cash flow?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the pretax cost of debt-aftertax cost of debt

Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 35 percent. What is the pretax cost of debt? Wh..

  Mutually exclusive project

Project S costs $15,000, and its expected cash flows would be $4,500 per year for 5 years. Mutually exclusive Project L costs $37,500, and its expected cash flows would be $11,100 per year for 5 years. If both projects have a WACC of 14%, which proje..

  What is the future value-ordinary annuity

What is the future value of a 3%, 5-year ordinary annuity that pays $650 each year? Round your answer to the nearest cent. If this were an annuity due, what would its future value be? Round your answer to the nearest cent.

  What is the yield to maturity of the bond

The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compensated for the risk of the firm? What is the excel formula to solve this?  What is the yield ..

  Long term bonds-common stock convertible debentures

Golden Gate Aircraft is a medium-sized aircraft company located just outside San Francisco whose sales distribution is approximately 30 percent for defense contracts and 70 percent for nonmilitary uses. To raise addition fund, which one should be use..

  What is projected dividend for coming year-rapid growth

Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 9 percent per year indefinitely. The required return on this stock is 11 percent,..

  What is the amount of the net income

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset turnover is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?

  Explain two factors that affect the present value of asset

Which is better, a present value of $100 or a future value of $100? Please explain. Define and explain two factors that affect the present value of an asset. In five years, what is the future value of $4,000 if the interest rate is 10% and money is c..

  What is the bonds capital gain or loss yield

Ezzell Enterprises' noncallable bonds currently sell for $939.00. They have a 5-year maturity, semi-annual coupon rate of 12.00%, and a par value of $1000. What is the bond's capital gain or loss yield?

  Compare the opportunities and risk profiles of the two banks

Two competing commercial banks situated in the same community have comparable asset portfolios, but one operates with a total capital ratio of 10 percent, while the other operates with a ratio of 12 percent. Compare the opportunities and risk profile..

  What should be the value of the bond in seven years

A 25 year bond has a coupon rate of 12% and semiannual coupon payments. The required nominal yield on the bond is 10%. Assume that the yield curve is downward sloping and the yield is expected to decline to 8%. a. What would be the value of the bond ..

  Negative growth stock

Questions related to Negative growth stock

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd