Your client is being sued. You have asked the clients lawyerabout the possibility of losing the lawsuit. The client, meanwhile,has asked you to describe what would happen to his or her financialstatements. The client has also informed you that by losing thelawsuit, he or she anticipates losing the mortgage and has startedtalking to a mortgage lender. The client wants to know if part ofthe debt is forgiven, or if the mortgage is rewritten, or if themortgage will be rewritten if he or she files Chapter 11.
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