Problem:
Your 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.
Address the following in your report:
1) Define and summarize the benefits of different types of bankruptcy.
2) Explain if the client can file Chapter 7 bankruptcy.
3) Explain if the client can file Chapter 11 bankruptcy.
4) Explain if the client can file Chapter 13 bankruptcy.
5) Discuss the benefits and drawbacks of the client filing bankruptcy.
6) Discuss how the type of bankruptcy would differ if the client's company was owned by a partnership.
7) Give advice whether or not the client should file bankruptcy. If so, what type of bankruptcy should the client file?