I’m working on a business law writing question and need an explanation to help me learn.
Donald operates several businesses in Atlantic City and has a home in Ventnor he owns with his wife, Marla. Two of the businesses are sole proprietorships, one is a corporation and two are limited liability companies he owns Marla. All except one of the LLCs are performing poorly and he does not believe the one profitable LLC can support the others. He owes money to many suppliers and contractors. Although his personal assets are substantial and he made over $200,000 in profits last year on the LLC he owns with Marla, he was asked to sign personal guarantees for some loans and does not want to lose everything he has.
If he were to file for bankruptcy, which chapter would he file under for himself and the businesses? Does Marla need to file as well? Carefully review his options and come up with a plan. Do you have any suggestions for his future business operations?
Be brief but specific. No more than 2 typewritten pages in Microsoft Word. DO NOT repeat the assignment as part of the answer.