Problem
Discuss each question based on the issue of law presented. If there is a specific theory or argument you are using, then qualify your answer by specifics and/or the law or rule/case law etc...that you are citing. Your conclusion is an important part of your answer...discuss your reasoning.
Essex, a manufacturing company is in serious financial difficulty and is unable to meet current unsecured obligations of $1,340,000.00 to some 20 creditors, who are demanding immediate payment. In that creditor list, Essex owes Steven Machine Corporation $15000.00 on a secured financing agreement for a CAD machine that was purchased last year.
Discuss the Following:
• What are the issues of law...what legal options are available to the creditors and essex?
• Discuss how a Bankruptucy estate is administered? What chapters would be best here and why? Why not he other chapters?
• When are debtor's rights and duties in bankruptcy?
• When are debts discharged in bankruptcy? What rights might Steven Machine have? Discuss option, and how, and if they can be pursued.