Problem:
A committee chairman has revealed that your supervisor wants you personally to prepare a report discussing the following options for a client who is in serious business trouble. Your firm's client just recently revealed that his company was $2.9 million in debt and that his company is not incorporated. He has reluctantly asked if your firm could advise him on the process of bankruptcy.
- Define bankruptcy.
- Explain if the client can file Chapter 7 bankruptcy.
- Explain if the client can file Chapter 11 bankruptcy.
- Explain if the client can file Chapter 13 bankruptcy.
- Discuss the benefits and drawbacks of the client filing bankruptcy.
- Discuss how the type of bankruptcy would differ if the client's company was owned by a partnership.
- Give advice whether or not the client should file bankruptcy. If so, what type of bankruptcy should the client file?