Subject: LEGAL ENVIRONMENT OF BUSINESS 5. \"Smith\'s Family Restaurant LLC\" fil
ID: 2781748 • Letter: S
Question
Subject: LEGAL ENVIRONMENT OF BUSINESS
5. "Smith's Family Restaurant LLC" files for chapter 7 bankruptcy. Smith's Resturant has the following debts (see below). place a "check mark" beside the debt(s) that are secured.
Bank loan on building (W/dees of trust) for $300,000 ________
Credit card bill for $8075.00 to master-card inc. ________
I.O.U. for $5000.00 signed by owner of Smith's to his brother ________
Mechanic's lien for $4000.00 filed by Jim's plumbing service ________
$7235.00 (faxed) invoice (bill) from capital meats inc. ________
6. what creditor is thinking when she uses secured transaction(s): "_________________________________ money."
Explanation / Answer
The debts which are secured are:
Bank loan on building (W/dees of trust) for $300,000
Mechanic's lien for $4000 filed by Jim's plumbing service
Only this two mentioned above qualifies as secured debt as in case of loan not paid the bank can recover the amount from selling the property i.e. the building and Mechanic's lien is filed in the country in which the property is located for those who have provided material and labor to improve the property and has the security interest in the property. The claim is filed against the property owner and there is time frame of 2 to 6 months to sort the claim or file a law suit against the property owner.
Credit card bill isn't against any collateral neither the invoice from capital meats inc can be a secured debt or collateral to a debt.
6. The creditor is thinking when she uses secured transaction is that her money is against a collateral and she can claim the collateralized asset in the event of the borrowing getting default. The money lent can be recovered by selling the asset that is collateralized. Thus she can safeguard her money and reduce the risk of getting nothing in the liquidation by using secured transaction for money.
The debts which are secured are:
Bank loan on building (W/dees of trust) for $300,000
Mechanic's lien for $4000 filed by Jim's plumbing service
Only this two mentioned above qualifies as secured debt as in case of loan not paid the bank can recover the amount from selling the property i.e. the building and Mechanic's lien is filed in the country in which the property is located for those who have provided material and labor to improve the property and has the security interest in the property. The claim is filed against the property owner and there is time frame of 2 to 6 months to sort the claim or file a law suit against the property owner.
Credit card bill isn't against any collateral neither the invoice from capital meats inc can be a secured debt or collateral to a debt.
6. The creditor is thinking when she uses secured transaction is that her money is against a collateral and she can claim the collateralized asset in the event of the borrowing getting default. The money lent can be recovered by selling the asset that is collateralized. Thus she can safeguard her money and reduce the risk of getting nothing in the liquidation by using secured transaction for money.The debts which are secured are:
Bank loan on building (W/dees of trust) for $300,000
Mechanic's lien for $4000 filed by Jim's plumbing service
Only this two mentioned above qualifies as secured debt as in case of loan not paid the bank can recover the amount from selling the property i.e. the building and Mechanic's lien is filed in the country in which the property is located for those who have provided material and labor to improve the property and has the security interest in the property. The claim is filed against the property owner and there is time frame of 2 to 6 months to sort the claim or file a law suit against the property owner.
Credit card bill isn't against any collateral neither the invoice from capital meats inc can be a secured debt or collateral to a debt.
6. The creditor is thinking when she uses secured transaction is that her money is against a collateral and she can claim the collateralized asset in the event of the borrowing getting default. The money lent can be recovered by selling the asset that is collateralized. Thus she can safeguard her money and reduce the risk of getting nothing in the liquidation by using secured transaction for money.