Hardluck Inc. is insolvent. Its liabilities exceed its assets by $13 million. Blank, its president, and other family members own Hardluck. Blank, whose assets are estimated at less than $1 million, guaranteed the corporation’s loans. A consortium of banks is the principal creditor of Hardluck, having lent it $8 million, the bulk of which is unsecured. The banks have decided to seek reorganization of Hardluck, and Blank has agreed to cooperate. Regarding the proposed reorganization:

a. Blank’s cooperation is necessary for signing the petition for a reorganization.

b. If a petition for bankruptcy is filed against Hardluck, Blank also will have personal bankruptcy status resolved and relief granted.

c. Only a duly constituted creditors’ committee may file a plan of reorganization of Hardluck.

d. Hardluck will remain in possession of its assets unless a request is made to the court to appoint a trustee.