Three dentists$-$Menchaca, Nguyen, and St$.$ Clair$-$formed a partnership to open a practice in New Braunfels, Texas.

The partnership's primary purpose was to reduce expenses by sharing building and equipment costs, supplies, and the services of clerical staff. Each partner contributed $$100,000$ in cash and, with the help of a bank loan, constructed a building and acquired furniture, fixtures, and equipment. Because the partners maintained their own separate clients, annual net income was allocated as follows: Each partner received the specific amount of revenues that they generated less one$-$third of all expenses. From the beginning, the partners did not anticipate expansion of the practice; consequently, they agreed to be able to withdraw cash each year up to $90$ percent of their share of income for the period.

The partnership was profitable since its creation. Over the years, St$.$ Clair invested heavily in real estate in the local area. After several years, St$.$ Clair was spending less time with the dental practice to be able to concentrate on real estate investments. Unfortunately, a number of these real estate deals proved to be bad decisions, and St$.$ Clair incurred significant personal losses. A week ago, St$.$ Clair's personal creditors filed a $$143,000$ claim against the partnership's assets. Unbeknownst to Menchaca and Nguyen, St$.$ Clair had become personally insolvent.

Menchaca and Nguyen hurriedly met to discuss the problem because St$.$ Clair could not be located. St$.$ Clair's capital account had a balance of $$120,000,$ but the partnership had only $$38,000$ in cash. The partners knew that St$.$ Clair's dental equipment could be sold for relatively little. In contrast, the building had appreciated in value, and St$.$ Clair's creditors' claims could be satisfied by selling the property. However, this action would have a tremendously disruptive impact on the dental practice of the remaining two partners.

What alternatives are available to Menchaca and Nguyen to deal with this situation, and what are the advantages and disadvantages of each alternative?