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Question
Pam, the owner of Quality Corporation (QC), sells QC to Rita. Later, Rita files a suit against Pam for fraud in the deal. Pam signs a note payable to Rita for $50,000, and Rita agrees to release Pam from further claims, except for "obligations under the note." Pam does not pay the note and files for bankruptcy under Chapter 7. According to the decision in Case 30.3, Archer v. Warner, the $50,000 debt in this case isa. dischargeable to the extent that its payment would not constitute "substantial abuse" by Pam.
b. dischargeable to the extent that its payment would work "substantial hardship" on Pam.
c. entirely dischargeable.
d. not dischargeable.
Answer
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