The law firm is very concerned that the client would not be able to pay anyjudgment levied against it by the courts in a civil tort case. Due to recent robberies and legal troubles with the client, your company is worried that the client may have to file bankruptcy. The client has just over $400,000 in debt and is not incorporated.
You have been tasked with putting together a report on the following issues:
Can the client file Chapter 7 bankruptcy? Explain
Can the client file Chapter 11 bankruptcy? Explain
Can the client file Chapter 13 bankruptcy? Explain
What are the benefits and the negatives of the client filling bankruptcy?
If the client is a partnership, how does this affect what type of bankruptcy it may file?