Does a trustee's avoidance power allow for the trustee to have lien authority superior to that of a legitimate creditor?
A) No, because the debtor and the creditor have a contractual obligation that cannot be superseded after the fact.
B) Yes, under the strong-arm clause, one of the trustee's avoidance powers is lien authority over that of a creditor.
C) No, unless the trustee can prove there was fraudulent intent.
D) No, if the creditor can prove that at least 30% of the debt was paid prior to filing for bankruptcy.
Correct Answer:
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Q29: Define avoidance powers.
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