Generally,if the sale of collateral is insufficient to repay a secured loan plus interest,the creditor may bring a lawsuit against the debtor to recover a ________ judgment for the difference.

Question

Quizplus · Accepted Answer

A deficiency judgment is a court order requiring the borrower to pay the remaining balance on a loan after the collateral has been sold, and if the sale of collateral is insufficient to repay the secured loan plus interest. This allows the creditor to recover the shortfall amount from the borrower. Therefore, option B is the correct answer. The other options listed are not applicable in this context.

Generally,if the Sale of Collateral Is Insufficient to Repay a Secured