Exam 9: Secured Transactions and Bankruptcy

Which of the following types of bankruptcy is used by individuals with regular income to develop a plan to repay all or part of their debts and provides protection from creditors while they do so?

Which of the following statements is true regarding exoneration?

A security interest in negotiable instruments is automatically perfected upon attachment for _____ days without filing or taking possession.

What are the two types of intangible collateral?

The surety has no right to reimbursement until he actually pays the creditor and then only to the extent of the payment made.

Samantha bought a refrigerator for personal use. If the store where she purchased the refrigerator loaned her the money to make the purchase then:

It is common in many business transactions involving the extension of credit for the creditor to require that someone in addition to the debtor promise to fulfill the obligation. This promisor generally is known as a(n) ___.

A debtor usually meets with his or her creditors in a " _____ " meeting, so named because of the section of the bankruptcy code which requires such a meeting.

Discuss a surety's right of exoneration.

Negotiable instruments can be used as collateral.

Discuss briefly Chapter 7 bankruptcy.

A _____ is the one who has given something of value to the debtor in exchange for a promise that the debtor will repay the loan.

A _____ is one who owes a debt to a creditor.

Which of the following statements is true regarding reimbursement?

Not all debts are dischargeable in bankruptcy.

A creditor with a perfected security interest has greater rights in the collateral than a creditor with an unperfected security interest.

For attachment, the creditor can enforce the security interest against third parties.

What are the three necessary requirements that must be fulfilled so that the security interest can said to be attached?

_____ occurs when the debtor does not make the mortgage payments on property that is generating income. The debtor takes the money and uses it for himself and lets the real estate go into bankruptcy.

Discuss a surety's right of reimbursement.