Chapter 19: Bankruptcy
What's the most common type of bankruptcy proceeding?
Liquidation Proceedings
What does a termination statement show?
No further obligation to secured party from debtor
What does fiduciary mean?
A person who has the duty to act on behalf/primarily for another person's benefit
Who hires someone else to represent them on their behalf?
A principal
Define debtor.
A person or party with an obligation to a secured party
How long do installment plans last in individual payment plans?
36 to 60 months
How does automatic perfection happen?
Selling a consumer good perfects automatically
What is agency estoppel?
A principal leads leads a third party to believe that another individual serves their agent but the principal made no agreement with agent
What is the duty of reimbursement and indemnification?
Describe Principal.
An individual who hires someone else to represent them on their behalf
Who are bankruptcy remedies available to?
Individuals, partnerships, or corporations
What is after-acquired property?
Property acquired after security agreement for collateral
Who is a person who's hired to performa task for another but is not the other's employee?
An independent contractor
What is formed by making a written or oral agreement?
Express agency
Define default.
Debtor fails to make payments on a loan or declares bankruptcy
What are the goals of bankruptcy law?
Protection to creditors OR opportunities for debtors
What is a requirement for a creditor to become a secured party?
a written agreement, value, or debtor rights in the collateral
What is fulfillment of purpose?
When a homeowner enters an agreement with a real state agent solely for the purpose of selling their home. Since it has been sold and the agent can't act on behalf of the seller
What is the term to describe a third party that knows an agent is making an agreement on behalf of a principal (also knowing their identity)?
A disclosed principal
Define express agency.
Formed by making a written or oral agreement
When is a permanent trustee selected during a liquidation proceedings?
Creditors' meeting
How does the UCC define default?
No specific definition from UCC
What is a constructive notice?
Note of agency termination that is usually given by publishing an announcement in a newspaper
What is disloyalty of agent?
When a debtor turns over all assets to a trustee