A Secured Creditor Whose Claim Exceeds the Value of the Collateral

question 17

True/False

A secured creditor whose claim exceeds the value of the collateral may submit a proof of claim and become an unsecured claimant as to the difference.

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Definitions:

Standards Not Met

The condition of failing to reach established criteria or expected levels of quality.

Bankruptcy Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing, governed by bankruptcy law.

Automatic Stay

After bankruptcy has been filed, a moratorium during which creditors cannot bring or continue action against the debtor or his or her property.

Discharging Debts

The process of eliminating debts through various means, such as bankruptcy or fulfillment of payment terms.