Which of the Following Is True

question 33

Multiple Choice

Which of the following is true?

• A) The creditor is generally not entitled to obtain a deficiency judgment where the collateral is goods if the sale of the goods does not cover the amount owed on the underlying debt.
• B) The right of redemption for collateral extends until a reasonable time after its disposal.
• C) To exercise the right of redemption,the debtor must not only pay the amount owed,but also all related costs of the creditor in connection with the repossession of the collateral.
• D) Deficiency judgments are generally against public policy unless reasonable in amount.

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Definitions:

Bankruptcy Practice

The area of legal practice focusing on the laws and procedures governing bankruptcy and insolvency, including the rights of creditors and debtors.

Responsibility

The duty or obligation to carry out tasks, make decisions, and face the consequences of actions or inactions.

Federal Exemptions

Specific protections provided by federal law that prevent certain property or assets from being seized or sold to repay debts.

Michigan Exemptions

Legal provisions in Michigan allowing debtors to keep certain property out of reach from creditors during bankruptcy and collections.