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During an ABC, It Is Determined That the Funds from the Sale

Question 39

Multiple Choice

During an ABC, it is determined that the funds from the sale of assets is not sufficient to pay all of the liens in full. What will be done in this situation?


A) The creditors will be paid in the order in which the filed their claim on a first come first served basis.
B) The unsecured creditors will be paid first.
C) The creditors possessing a valid lien will receive pro rata payments.
D) The money will be held in trust.

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