James Smith had a successful auto repair business, there has been a downturn in business and he
Question:
James Smith had a successful auto repair business, there has been a downturn in business and he is unable to pay his creditors. James is also divorced from his wife and is paying alimony to her and child support for their two children. His possessions/assets are his home, vehicle valued at$5,000, tools of his trade valued at $7,500, personal jewelry valued at $6,800, persona household furnishing valued at $10,000, and a whole life insurance policy with a face value of$25,000, which he has had for 15 years. James also serves as a director on the board of Commonwealth Bank and is Chief Counselor for the local government in his settlement. The amount owed to his creditors is $19,500. James wants to know how he can best resolve his money issues without being left penniless or bankrupt. Also, advise James as to which process his creditors would have to follow in order to have him declared bankrupt. Included in that advice should be whether if James can commence proceedings to have himself declared bankrupt.
The Legal Environment of Business A Critical Thinking Approach
ISBN: 978-0132664844
6th Edition
Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne