Which of the Following Is True Regarding the Effect of an Automatic

question 17

Multiple Choice

Which of the following is true regarding the effect of an automatic stay on claims of secured creditors in a Chapter 7 proceeding?

• A)The automatic stay affects the claims of secured creditors in the same way it affects the claims of unsecured creditors.
• B)Secured creditors with claims of over $5,000 are not affected by the automatic stay.
• C)Secured creditors with claims of over $15,000 are not affected by the automatic stay.
• D)Secured creditors with claims of over $20,000 are not affected by the automatic stay.
• E)The court may exclude secured creditors from the automatic stay if they petition the court to show that they do not have adequate protection under the stay.

---

Definitions:

Economic Harm

covers the financial losses and damages suffered by an individual or entity due to another's actions or failure to act.

Intentional

In law, actions performed with the conscious objective or purpose to accomplish a particular result.

Comparative Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to cause the injury.

Implied Assumption

An unstated understanding or presumption that underlies an agreement or contract, accepted as a term by the parties involved.