James Smith is the owner of a once profitable used car business. However, there was a...

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James Smith is the owner of a once profitable used car business.However, there was a downturn in the economy and Mr. Smith is in aposition where he can hardly pay his debts. He was recentlydivorced from his wife and in compliance with court order; he ispaying her child support for his 2 children. He has numerouscreditors seeking payment for services and supplies requested byhis company. The total amount owed to his is $200,000. He has alife insurance, which he has had for 35 years. It is a whole lifeinsurance. He also owns an antique 1965 Ford Mustang and a 1964 F150. He owns a Rolex watch, which is valued at $170,000 because itwas made in 1933. Mr. Smith does not want to be declared bankrupt,but he may have no other choice. Advise Mr. Smith as to what he cando not to be declared bankrupt and explain the process if one ormore of his creditors approach the court.

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James Smith is the owner of a once profitable used car business.However, there was a downturn in the economy and Mr. Smith is in aposition where he can hardly pay his debts. He was recentlydivorced from his wife and in compliance with court order; he ispaying her child support for his 2 children. He has numerouscreditors seeking payment for services and supplies requested byhis company. The total amount owed to his is $200,000. He has alife insurance, which he has had for 35 years. It is a whole lifeinsurance. He also owns an antique 1965 Ford Mustang and a 1964 F150. He owns a Rolex watch, which is valued at $170,000 because itwas made in 1933. Mr. Smith does not want to be declared bankrupt,but he may have no other choice. Advise Mr. Smith as to what he cando not to be declared bankrupt and explain the process if one ormore of his creditors approach the court.