One of Your Corporate Clients Has Recently Filed for Bankruptcy

question 68

Essay

One of your corporate clients has recently filed for bankruptcy. In the course of the proceedings, you (a)prepare a plan of reorganization that alters the rights of preferred stockholders, (b)notify the company's creditors of an impending bulk transfer of the company's assets, (c)review IRS secured claims against these assets, (d)restructure the company's debt by reducing its principal amount and extending its maturity, and (e)advise the bankruptcy court as to how this restructuring will impact the company's NOLs. Which of these activities, if any, constitutes the unauthorized practice of law?

---

Definitions:

Restrictive Covenants

Clauses within a contract that limit the actions of the parties, commonly used in employment and real estate agreements to restrict competition or usage.

Title Insurance Policies

Contracts that protect buyers and lenders from losses due to defects in a property's title.

Mortgagees

Lenders or financial institutions that provide funds for a mortgage loan, holding the property as collateral until the loan is repaid.

Tenants

Individuals or entities that hold a leasehold interest in a property, granting them the right to occupy and use the property according to the terms of their lease agreement.