FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Creditors Rights and Bankruptcy

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Short Answer

Review LaterAdd Note

Review Later

The collateral used for a mortgage is ____.

Correct Answer

verified

Show Answer

Question 2

Short Answer

Review LaterAdd Note

Review Later

A ________ is a contract that specifies the parties, describes the collateral, states the obligations of the debtor, and states the remedies available to the secured party.

Correct Answer

verified

Show Answer

Question 3

Short Answer

Review LaterAdd Note

An ________ stops creditors from pursuing their collection actions.

If a person cosigns a loan as a guarantor, that person becomes primarily liable for the debt.

What is the standard that an individual must meet in order to file for Chapter 7 bankruptcy?

A ________ allows the debtor in possession to avoid any obligation that he or she would otherwise be forced to perform.

What has Congress done to try to prevent individuals from abusing bankruptcy protections?

In liquidation secured creditors are paid first and in full as long as the value of the collateral equals or exceeds the value of their security interests.

Before an individual is allowed to file for bankruptcy, he or she must complete a short credit-counseling seminar.

The order of payment for unsecured creditors in bankruptcy is specified in the state's UCC statutes.

Properties owned by businesses are eligible for mortgage refinancing under the Mortgage Forgiveness Debt Relief Act.

Unsecured creditors may seize any asset of the borrower once they have a debt collection judgment.

The bankruptcy trustee is appointed to represent the creditors' interests.

How does a secured creditor establish his or her rights to the collateral securing a first-priority position?

The bankruptcy trustee is a representative of:

What is the role of a trustee in bankruptcy?

Whose only legal remedy is to bring a lawsuit against a borrower to try to recover the money loaned?

A Chapter 11 debtor may use bankruptcy as an excuse for not performing contractual obligations.

Bankruptcy is primarily governed by:

Fast Feet, a manufacturer of running shoes, gave merchandise on credit to Rick's Running for its store. Rick's is required to sign an agreement that describes the merchandise as collateral and specifies that Rick's will pay Fast Feet weekly based on the sales of the shoes. Fast Feet files a statement of notice with the appropriate government agency. Based on these facts, what kind of creditor is Fast Feet, and why?