Arthur is in immediate need of cash.  Arthur was involved with an accident where the other party was at fault.  Arthur has a pending suit against the other party.  The suit has been filed.

Arthur goes to a finance company and the finance company agrees to lend Arthur $10,000.00 and to use the suit as collateral.  They prepare a financial statement containing all the relevant

information.  However, the finance company does not file the financial statement with the Recorders Office.  Arthur then goes to another finance company and the second finance company using

the same suit loans Arthur $20,000.00.  Furthermore, the second finance company states in the financial statement that “any property purchased by Arthur with said funds shall be used as

collateral to satisfy the loan.  Arthur purchases a new car with the funds.  The second finance company files the financial statement with the Recorder’s Office.  Arthur then sells the new car to

Henry for a reasonable price.  Please discuss the relevant topics in terms of collateral, attachment, perfection, priority and exemptions.

D    Bankruptcy.

Henry has just graduated from college.  After graduation, Henry finds gainful employment.  Henry  accumulated student loans totaling $45,000.00 and also has a number of credit cards

with a total of outstanding debts being $25,000.00.  In addition, Henry purchases a new car and also buys a home.  Henry is involved in a car accident and is unable to work.  Henry incurs

mounting medical bills and is unable to pay his debts.  Henry contemplates filing a bankruptcy.  Henry stops paying his house note, becomes in serious arrearage in all of his debts.  Henry

transfers his car to his brother for a nominal amount.  Henry runs all of his credit cards to the maximum.  Henry rents a storage unit under another name to hide some valuable assets.  Discuss

the above in terms of voluntary/involuntary bankruptcy, what chapter might he be eligible for, estate, trustee, exemptions, distribution, discharge and reaffirmation.  Also, be sure to include

the “means test”.