Essex, a manufacturing company is in serious financial difficulty and is unable to meet current unsecured obligation of $1,340,000.00 to some 20 creditors, who are demanding immediate payment. In that creditor list, Essex owes Steven Machine Corporation $15000.00 on a secured financing agreement for a CAD machine that was purchased last year.
DISCUSS THE FOLLOWING:
What are the options available to the creditors and essexs?
Discuss how is a bankruptcy estate administered? What chapter would be best here and why? Why not the other chapters?
What are debtor’s rights and duties in bankruptcy?
When are debts discharged in bankruptcy?—what rights might steven machine have?—discuss options, and how and if they can be pursued.