A secured creditor repossesses the collateral from the debtor and sells it to satisfy the debt.Which of the following is paid first?
A)Debt of the creditor
B)Consequential damages suffered by the creditor due to the debtor's default
C)Court costs
D)Expenses of repossessing,storing,and selling the collateral

Question

Quizplus · Accepted Answer

The Code sets out the order in which any proceeds are to be distributed after the sale of collateral by the creditor.First,any expenses of repossessing,storing,and selling the collateral,including reasonable attorney's fees,are paid.

A Secured Creditor Repossesses the Collateral from the Debtor and Sells