Tutorial 21. Nor Luc is a Malaysian and has a sole proprietorship in Singapore in the form of a retail shop. Theshop is rented. He has a car registered in his name and he uses it for both business and privatepurposes. He also owns an expensive Rolex watch. He lives in a rented HDB house. He also has$1000 in his local bank account which is in his name. Of late his business has not been doing well andhe has run into huge debts. The total debts of the business amount to $170000. (a) Advice the creditors as to some of the options open to them.Creditors have several options available for them to enforce payment on Nor Luc. One is through filingbankruptcy petition once they have all the evidence needed since the amount owed is greater than $15,000.Liquidates all his assets and distribute among the creditors (except for necessities, hdb, cpf). Or throughwright of seizure and sale since the cost is cheaper and it is for self (bigger portion)Bankruptcy- watch, car, bank, future salary, overseas assets, things in the house that is not a necessity),business assets. -More expensive, longerWright of Seizure and Sale- no overseas assets, no bank, no salary, no things in home(b) If after all the legal avenues for redress have been exhausted (such as bankruptcy), assuming thecreditors have not been fully repaid, is there anything else they can do at that stage? Creditors can continue to collect part of his salary. If deemed that Nor Luc cannot pay back the remainingamount at all, then bankruptcy may be lifted.(c) Is there anything they could have done earlier (including some sort of insurance/etc – search theweb) to protect themselves or minimize the risks?Proof of claim- ensure that the creditor is included in the distribution of any funds.Attend creditors meetings- ask questions during the meetings and take debtor’s deposition. Armed withinformation to assist them through the debtor’s bankruptcy. The correct financial information of the debtoras he might still have remaining assets that can be liquidated.File notice of appearance- will be notified all about the debtor’s actions and appearance.Before lendingAdvance payments, collateral, credit- worthy guarantor, trade credit insurance, credit bureau to assess thecredit-worthiness of debtor.