Moving on, you begin compiling a list of all of Fred's creditors. He tells you that he has one very dear friend who loaned him $5,000 last year to help Fred pay his children's private school tuition. He would like that friend to be paid back first and in full. What should you tell Fred?

Answer rating: 100% (QA)

You should inform Fred that in the context of a formal bankruptcy or insolvency proceeding all credi... View the full answer