Which of the Following Was the Result in Helms V

question 80

Multiple Choice

Which of the following was the result in Helms v.Certified Packaging Corp. ,the case in the text in which the court considered whether settlement proceeds from a negligence lawsuit stemming from a fire that destroyed the collateral should belong to the debtor's bankruptcy estate or the secured creditor?

• A)The court ruled in favor of the creditor on the basis that the documents evidencing the security interest did not limit the creditor's interest in any way.
• B)The court ruled in favor of the bankruptcy estate on the basis that the trustee made first claim to the settlement proceeds.
• C)The court ruled that the creditor was entitled to the full settlement proceeds,without consideration of the amount of the debt,on the basis that it had a secured interest.
• D)The court ruled in favor of the creditor,regardless of the value of the collateral.
• E)The court ruled in favor of the bankruptcy estate because the documents evidencing the security interest expressly limited the secured creditor's interest.

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