The following three cases (#1, #2, and #3) relate to bankruptcy law. You must determine what chapter in bankruptcy best fits the fact pattern and explain why you selected a specific bankruptcy chapter for each case.

Case # 1 Debbie Evans is the sole proprietor of a small business by the name of Coffee-To- Go. The business has been generally cash positive since inception, 10 years ago. However, due to the recent pandemic, the business has accrued $75,000 in debts, cash flow is now negative, and Debbie is unable to pay her business creditors as debts come due. Debbie has decided to file for bankruptcy with the hope of stopping the late night and early morning creditor phone calls. Debbie wants to pay off all her debts but just cant generate enough income right now. One hundred thousand dollars in debts is owed to Debbies friends. These friends helped Debbie get started ten years ago by loaning her $50,000 on a ten year note with interest of 10% per year. The note has a balloon payment that is due in another year. Debbie does not own any real estate. She has a student loan in the amount of $40,000 which is not included in the $75,000 business debt. None of the $75,000 is secured by collateral. The business had negative net income each of the last three years. Debbie had a car, but it was repossessed last week. The fair value of the car was about equal to the outstanding loan balance of $4,250. Debbie thinks she can sell the business assets for $$25,000. Debbies old boss told her several years ago she would hire Debbie back for $48,000 per month year. Debbie wants to make sure her friends $50,000 loan is paid back.

Case # 2 John Wick maxed out his fifty credit cards and can no longer make the minimum payments and is not current on his car loan. The value of Johns car is $45,000. John has not paid his soon-to-be ex-wife her $20,000 property settlement nor the $700 per month child support payments. John has the following debts:

Credit card debt (50 credit cards) $285,000

Federal Income Tax 1,854

Ex-Wife Property Settlement 20,000

Child Support past due 2,100

Car Loan (secured) 58,000

John went to Hawaii last month to get a little R&R and stayed at the most expensive hotel on the beach and ate at the best restaurants. The Hawaii trip cost about $15,000 for a week in the sun and surf. John took out $10,000 cash advances on his credit card during the last 70 days. Johns salary is $98,500 per year. Average net pay per month is $5,400. The interest on the credit card debt is about $8,550 per month. John moved back to his parents house and the room he occupied during his elementary, junior high, and high school years.

Johns comment to you was get me out from under this nightmare. I dont want to be burdened by these debts anymore. What did I do to deserve this.

Case # 3 Mable Jones started a business three years ago. The business got off to a slow start, but Mable thinks the business is a winner. Mable tells you cash flow is increasing, the business is close to breakeven, and she was approached by a person that would like to place a six-figure order with a strong possibility of monthly reorders. There is just one problem, Mable was under capitalized when she started the business and took out a $250,000 loan / line of credit. Mabel does not want to throw in the towel. What is your advice as to bankruptcy?