QUESTION 2 2 point A bank cannot continue to try to repossess a vehicle from a d
ID: 2582043 • Letter: Q
Question
QUESTION 2 2 point A bank cannot continue to try to repossess a vehicle from a debtor who has filed for bankruptcy because of the O A semi-discharge A semi-automatic dismissal An automatic stay O A stop order There is no such moratorium in a Chapter 7 proceeding QUESTION 3 2 points A bank taking possession of collateral does not have to file a financing statement in order to perfect its interest. True False 2 points QUESTION 4 A composition agreement is a contract between creditors and a debtor in which the creditors agree to accept a lesser amount to satisty the de discharge the remaining debt True False 2 points QUESTION 5 A debtor is permitted to retain all or a portion of the family home so that the family will retain some form of shelter Real estate through which of the followin Real Personal estateExplanation / Answer
Ans 2: The correct answer is automatic stay. Thhe reason of this is when a Chapter 7 bankruptcy is filed, an automatic stay is created. The automatic stay makes it unlawful for most crediors to continue any collection activities. So it cannot legally repossess a vehicle after filing bankruptcy unless it obtains court permission first.
Ans 3: True. The reason of this is that there are four basic method perfecting the security interests , first is filing of financial statement, second is possesion of collateral, third control over collateral and fourth attachment of security interests. So if collateral is in possesion of bank, it is not required to file financial statement in order to perfect its interests.
Ans 4: True. The compostion agreement is an agreement made between debtor and two or more of his creditors,that each of creditor entering into the agreement will be paid a specified amount, less than the whole of their claims, and the creditor agree to accept such payment in satisfaction of full claims.
Ans 5: Homestead. The reason of this is that each state permits the debtor to retain the family home, either in its entirely or up to a specified amount, free from claims of creditors in bankruptcy. Homestead exemption have an allowance . It is the item that a debtor may allow to keep. Homestead covers necessities for living and working. Family homes can also be referred to in law as the homestead.