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The Factors of Filing Bankruptcy

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The law firm is very concerned that the client would not be able to pay any judgment 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. Your committee has been tasked with putting together a report on the following issues:

Can the client file bankruptcy? Explain.
What are the benefits and the negatives of the client filing bankruptcy?
If the client is a partnership, how does this affect what type of bankruptcy it may file?
Make sure to discuss any applicable statutes or case law in your state or country. Due to the seriousness of this matter, take the project a step further. Go to the discussion board and suggest additional information or improvements for at least two of the presentations.

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Solution Summary

This is a discussion on whether a client is able to file bankruptcy and looks over things to factor into the decision such as benefits, negatives, and partnership.

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There are several benefits of the client filing bankruptcy. The bankruptcy will discharge the debts of the client allowing the client to start afresh in his financial matters. If the client files for bankruptcy, he is forgiven from most of his unsecured debts. The benefit is that the collection efforts must stop. The moment you file for bankruptcy for your client there is a stay on collection efforts. If a creditor of your client persists in trying to collect the debt, the creditor will be held in contempt of court and forced to pay damages.

The bankruptcy will allow your client to keep his car provided he continues to make installment payments if they are due. If your client is a first time bankrupt, he will get ...

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