When a Debtor Fails to Pay a Debt,and the Value

question 4

Multiple Choice

When a debtor fails to pay a debt,and the value of the collateral is less than the full amount of the debt,which of the following is generally true?

• A) The creditor can obtain a deficiency judgment against the debtor for the amount of the debt that was not satisfied from the collateral.
• B) The creditor must absorb the remaining loss and has no further remedy.
• C) The creditor must file a bankruptcy proceeding against the debtor in order to obtain further relief.
• D) The creditor must record its security interest before proceeding further.

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Definitions:

Think With

A collaborative approach used in therapy and counseling where the therapist and client jointly explore thoughts and solutions.

Outthink

To surpass in thinking; devising a solution or strategy that is more clever or effective than that of others.

Therapeutic Holding Environment

A supportive psychological and physical space provided by a therapist which allows clients to explore their thoughts and feelings safely.

Empathic Mirroring

A therapeutic technique whereby the therapist reflects the feelings or emotional experiences of the client, fostering understanding and empathy.