Business law. writing homework help

PROBLEM 1:

You are a lawyer for Legal Aid. A young woman who is obviously distressed visits your office and says that several months ago she bought a refrigerator from an appliance dealer, and that she had to pay $200 per month for 12 months for it. She also says that she lost her part-time job and has not made any payments for three months and has been receiving threatening voicemail messages from a bill collector. She says that “they are threatening to take her refrigerator” and also “report her to her boss”.

In your interview with the young woman, what information would you need from her to fully understand her situation, and based on that information, what advice would you give regarding her rights, the rights of the creditor and a course of action.

PROBLEM 2:

Your client is a bank. Your client has asked your advice on the following transaction:

The bank’s customer, a retailer dealing with electronic goods, is opening a new store. The customer has requested a loan to pay for inventory and has told the bank that the inventory will be moved in and out through sales. In order to secure the loan, that is, have a security interest in the inventory, the bank has asked your advice as to how best to proceed.

• What advice would you give the bank on using the inventory to secure the loan?
• What are the requirements under Article 9 of the UCC to create and perfect the security interest?

PROBLEM 3:

Mr. and Mrs. George Smith are a retired couple living on George’s pension from a 401K plan and both their social security payments. They have three children and four grandchildren. They recently renovated their home, having taken a second mortgage on the property to pay for the work. The home’s market value is $700,000, $500,000 of which is encumbered by two mortgages and a home equity line of credit.

Mr Smith is a retired CPA and each year prepares income tax returns for high-net-worth clients who pay him lucrative fees for his service. During the rest of the year, the couple travels around the world. Their travels are paid for by credit cards, which are paid off from the income tax return preparation fees.

Unfortunately, Mr. Smith recently lost two of his biggest clients and as a result suffered a drastic cut in income, resulting in an inability to pay off the credit card debt. In addition, Mrs. Smith suffered a rare illness that was not fully covered by Medicare or their supplemental health coverage. Mr. Smith is also a co-signer on his oldest grandson’s student loans and has been making payments on his grandson’s behalf due to the latter’s unemployed status. The credit card balances total $28,650 and the medical bill totals $3,250. The student loan has a balance of $22,000 and the monthly payment is $250.00

The Smith’s assets include their home, described above, a collection of artwork valued at $50,000, two automobiles (a Mercedes Benz, current Blue Book value at $30,000 but subject to a $23,000 auto loan balance and a fully paid for Ford Taurus, valued at $7,000) and a RV, currently valued at $150,000 but subject to a $75,000 RV loan balance. Mrs. Smith also has a jewelry collection valued at approximately $12,000. Furniture in the home is valued at $10,000, including a grand piano and some inherited rare pieces. The Smiths also own stocks and bonds valued at approximately $150,000 and their on-hand cash is approximately $5000.00.

Because of the loss of the income tax preparation income and the inability to pay off the credit card debt, the Smiths are experiencing a negative cash-flow. Their liabilities now exceed their assets.

The Smiths have now filed for bankruptcy protection under Chapter 7 and are also seeking a Homestead Exemption to keep their real and personal property.

In addition, two weeks prior to filing for bankruptcy, in response to the annual funding drive of the local church, the Smiths made a $5000 charitable donation.

The Smith’s total assets are $509,000.00.

The Smith’s total liabilities are $629,900.00 (does not include the grandson’s student loan).

The combined monthly income for both Mr. and Mrs. Smith is $8,000.00.

The monthly expenses total $7,250.00 (including minimum payments on the credit card debt and the student loan payments).

You are the Bankruptcy Trustee. How would you dispose of the estate? How would you deal with the Homestead Exemption? How would you deal with the $5000 charitable donation?

APA style in-text citation and references included. Thanks