Charles is having a bad time money-wise. He has lost his job, he cannot pay his rent and he owes a lot of money to the bank for a failed investment. Charles does have some assets but it is going to take some time to sell them, and he really needs to find another job and find cheaper lodgings with less rent. A friend has warned Charles that he may be bankrupted, which amazes Charles. How can anyone bankrupt him? He knows that he will pay back the money, so what's the problem?

Question: What advice might you give to Charles in relation to a possible threat of bankruptcy? Your response should give consideration to whether the bank is a secured or unsecured creditor