Dart Corp. is a general creditor of Blue.  Blue filed a petition in bankruptcy under the liquidation provisions of the Bankruptcy Code. Dart wishes to have the bankruptcy court either deny Blue a general discharge or not have its debt discharged.  The discharge will be granted and it will include Dart’s debt even if
  A. Blue had filed for and received a previous discharge in bankruptcy under the liquidation provisions within 8 years of the filing of the present petition.
  B. Blue has unjustifiably failed to preserve the records from which Blue’s financial condition might be ascertained.
  C. Dart’s debt is unscheduled.
  D. Dart was a secured creditor which was not fully satisfied from the proceeds obtained upon disposition of the collateral.
  Answer:D
  D is corrent because the fact that the debt of a secured party was not fully satisfied from the proceeds obtained from disposition of the collateral will not result in a denial of a general discharge, nor will the remaining portion of the secured debt be nondischargeable. In such situations the secured party has the same priority as a general unsecured creditor (lowest priority) concerning the unpaid portion of the debt.
  A is incorrect because a debtor who has received a previous discharge in bankruptcy under the liquidation provisions within 8 years will be denied a general discharge.
  B is incorrect because a debtor who fails to keep books will be denied a general discharge.
  C is incorrect because unscheduled debts are not discharged in a bankruptcy proceeding.