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

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 a position where he can hardly pay his debts. He was recently divorced from his wife and in compliance with court order; he is paying her child support for his 2 children. He has numerous creditors seeking payment for services and supplies requested by his company. The total amount owed to his is $200,000. He has a life insurance, which he has had for 35 years. It is a whole life insurance. He also owns an antique 1965 Ford Mustang and a 1964 F 150. He owns a Rolex watch, which is valued at $170,000 because it was 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 can do not to be declared bankrupt and explain the process if one or more of his creditors approach the court.

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jeff jeffy answered 3 months ago

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