To start his business, neil borrows money from every source available to him, including all his credit cards and a line of credit at his bank. the business fails, and neil files a voluntary chapter 7 petition in good faith to discharge his debts. in the meantime, he returns to work as an attorney where he makes over twice the median family income in his state. neil's debts will most likely:
a. not be discharged because claims for amounts borrowed to start a business fall under an exception to discharge.
b. be paid at least in part, after his case is converted to a chapter 11 reorganization plan.
c. be paid at least in part, after his case is converted to a chapter 13 repayment plan.
d. be discharged provided that he follows all the rules.

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.