Secured creditors often face a difficult choice: either enforce the security or sue the debtor for the outstanding debt.Because of the policy of protecting vulnerable debtors, a secured creditor is never entitled to both enforce the security and, if that does not generate enough money, compel the debtor to pay the deficiency.

Question

Quizplus · Accepted Answer

Secured creditors typically have the right to enforce the security to recover the debt and, if the proceeds from the sale of the security are insufficient to cover the debt, they can also pursue the debtor for the deficiency, unless specific laws or agreements limit this right.

Secured Creditors Often Face a Difficult Choice: Either Enforce the Security