Discharge in Bankruptcy
Business Finance
Assignment Instructions
Analyze Business Case 31-3, “Discharge in Bankruptcy,” located on page 609 of your textbook. Prepare a professional-caliber brief on the case, based on the case information provided.
- 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 Requirements
- Cover 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.
Case:
31–3. Discharge in Bankruptcy. Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, president of Carter Oaks Crossing, signed a promissory note providing that the company would repay the amount with interest in installments beginning in 1999 and ending by 2006. Harman signed a personal guaranty for the note. Carter Oaks Crossing defaulted on the note, so McAfee sued Harman for payment under the guaranty. Harman moved for summary judgment on the ground that McAfee’s claim against him had been dis- charged in his Chapter 7 bankruptcy case. The case had been filed after 1999 but before the default on the note. The guar- anty was not listed among Harman’s debts in the bankruptcy filing. Would the obligation under the guaranty have been discharged in bankruptcy, as Harman claimed? Why or why not? [Harman v. McAfee, 302 Ga.App. 698, 691 S.E.2d 586 (2010)]
