Mike has a long history of purchasing items on credit.At the present time,Mike has six secured creditors to whom he owes a total of $60,000 and two unsecured creditors to whom he owes $30,000.Mike recently was laid off from his job.It appears that he will have a difficult time finding a new job,and any job he finds will likely carry a salary lower than the job that he recently lost.What factors should a secured creditor consider in deciding whether to enter into a composition agreement? How would the analysis be different for unsecured creditors?

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The Answer of Mike has a long history of purchasing items on credit.At the present time,Mike has six secured creditors to whom he owes a total of $60,000 and two unsecured creditors to whom he owes $30,000.Mike recently was laid off from his job.It appears that he will have a difficult time finding a new job,and any job he finds will likely carry a salary lower than the job that he recently lost.What factors should a secured creditor consider in deciding whether to enter into a composition agreement? How would the analysis be different for unsecured creditors?

Mike Has a Long History of Purchasing Items on Credit