Dr. Wayside works at a local clinic as a general practitioner. Because she has significant unsecured debt,
Question:
Dr. Wayside works at a local clinic as a general practitioner. Because she has significant unsecured debt, Dr. Wayside decided to petition the United States Bankruptcy Court for relief under Chapter 7 of the Bankruptcy Code. The court appointed a trustee who, upon review of the petition, filed a motion with the court to convert the debtor’s original petition to a Chapter 11 reorganization. The trustee concluded that Dr. Wayside had sufficient income from ongoing business operations to repay her creditors completely within four years through a Chapter 11 plan of reorganization. Alternatively, the trustee concluded that if the court approves a Chapter 7 liquidation, Dr. Watson’s creditors would likely receive less than 25 percent of their unsecured claims. Do you agree with the trustee that a Chapter 7 bankruptcy is inappropriate? Explain.
Step by Step Answer:
The Legal And Ethical Environment Of Business
ISBN: 9781454893028
2nd Edition
Authors: Gerald R. Ferrera, Mystica M. Alexander, William P. Wiggins, Cheryl Kirschner, Jonathan J. Darrow