On May 5, Bold obtained a $90,000 judgment in a malpractice action against Aker, a physician. On June 2, Aker obtained a $75,000 loan from Tint Finance Co. by knowingly making certain false representations to Tint.  On July 7, Aker filed a voluntary petition in bankruptcy under the liquidation provisions of the Bankruptcy Code.  Both Bold and Tint filed claims in Aker’s bankruptcy proceeding.  Assets in Aker’s bankruptcy estate are exempt.  Bold’s claim
  A. Will be exempt from Aker’s discharge in bankruptcy.
  B. Will be set aside as a preference.
  C. Will be discharged in Aker’s bankruptcy proceeding.
  D. Will cause Aker to be denied a discharge in bankruptcy.
  Answer:C
  C is corrent because when a debtor is granted a discharge in a bankruptcy proceeding, most of the debtor’s obligations are discharged. A debt arising from the negligence of the debtor is a dischargeable debt. Therefore, Bold’s claim will be discharged. If Bold’s claim was based on willful or malicious misconduct of the debtor, then the debt would not be discharged.
  A is incorrect because Bold’s claim would be exempt from Aker’s discharge in bankruptcy if the claim was based on willful or malicious misconduct of the debtor (Aker). In this situation, Bold’s claim was based on negligence, not willful or malicious misconduct.
  B is incorrect because Bold’s claim is not a preference. A preference is defined as a transfer of property to a creditor in satisfaction of an antecedent debt made within 90 days prior to the filing of the bankruptcy petition while the debtor is solvent in the bankruptcy sense.
  D is incorrect because the tort of negligence is not an act that would bar a general discharge of all debts.