Problem:
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:
What are the benefits and the negatives of the client filing bankruptcy?