Asked by Natali Hernandez-Chavez on Jul 07, 2024
Verified
A creditor might try to obtain an advantage over other creditors by obtaining a(n) ________ on the debtor's property to secure an existing debt.
A) surety
B) preferential lien
C) presentment
D) equity of redemption
Preferential Lien
A lien that gives the creditor the right to be paid before other creditors if the debtor defaults or assets are liquidated.
Existing Debt
Financial obligations or loans that a person or entity is currently responsible for.
- Distinguish between legitimate and fraudulent transactions, focusing on preferential payments during bankruptcy proceedings.
Verified Answer
AB
Amani ByronJul 10, 2024
Final Answer :
B
Explanation :
A creditor might try to obtain an advantage over other creditors by obtaining a lien on the debtor's property to secure an existing debt.The creditor might seek to get the debtor's consent to a lien or to obtain a lien by legal process.Such liens are considered preferential liens.
Learning Objectives
- Distinguish between legitimate and fraudulent transactions, focusing on preferential payments during bankruptcy proceedings.
Related questions
Which of the Following Transfers Would Be Considered Fraudulent Under ...
Bill's Bicycle Business Has Gone Bust ...
To Have Made a Preferential Payment That Can Be Recovered ...
A Bankruptcy Trustee Can Avoid Fraudulent Transfers or Obligations If ...
Kathleen Is Thinking About Petitioning for Bankruptcy ...