Expert answer:Discharge in BankruptcyIntroduction”Bankruptcy law is designed to accomplish two main goals: to provide relief and protection to debtors who have ‘gotten in over their heads’ and to provide a fair means of distributing a debtor’s assets among creditors. Thus, the law attempts to protect the rights of debtor and creditor, with an emphasis on requiring debtors to pay as many of their debts as they can” (Clarkson, Miller, Jentz, & Cross, 2006, p. 27).For this assignment, you will examine the issue of discharging debt in bankruptcy, and decide whether a debtor’s debt to a company is dischargeable.By successfully completing this assignment, you will demonstrate your proficiency in the following course competencies and assignment criteria:Competency 2: Recognize the various forms, requirements, and limitations of business organizations.Determine whether a debtor’s debt to a company is dischargeable.Determine whether a company should be sanctioned for violating a discharge order.Competency 6: Communicate professionally, according to the expectations of the field of accounting.Express main points, arguments, concepts, and information coherently and logically.Assignment InstructionsAnalyze Business Case 31-5, “Discharge in Bankruptcy,” located on page 619 of your textbook. Prepare a professional-caliber brief on the case, based on the case information provided.31–5. Discharge in Bankruptcy. Monica Sexton filed a petition for Chapter 13 reorganization. One of her creditors was Friedman’s Jewelers. Her petition misclassified Friedman’s claim as $800 of unsecured debt. Within days, Friedman’s filed proof of a secured claim for $300 and an unsecured claim for $462. Eventually, Friedman’s was sent payments of about $300 by check. None of the checks were cashed. By then, Friedman’s had filed its own petition under Chapter 11, Bankruptcy Receivables Management (BRM) had bought Friedman’s unpaid accounts, and the checks had not been forwarded. Sexton received a discharge on the completion of her plan. BRM was not notified. BRM wrote to Sexton’s attorney to ask about the status of her case, but received no response. BRM demanded that Sexton surrender the collateral on its claim. Sexton asked the court to impose sanctions on BRM for violating the discharge order. Was Sexton’s debt to Friedman’s dischargeable? Should BRM be sanctioned? Discuss. [In re Sexton, __ Bankr. __ (E.D.N.C. 2011)] (Clarkson 619)State the facts of the case and the key issues.Cite the code or statute provisions applicable to the case.Determine whether the debt is dischargeable, and explain your reasoning.Decide whether the company should be sanctioned for violating the discharge order, and explain your reasoning.Express your main points, arguments, concepts, and information coherently and logically.Additional RequirementsCover page: Include your name, the assignment number, and the assignment or case title.Length: 1–2 double-spaced pages, not including the cover page.Font and font size: Times New Roman, 12-point.APA formatting: Format resources and citations according to current APA guidelines.
