If a creditor fails to comply with Article 9 and loses his preferred claim,he becomes a(n)________ if the debtor is declared bankrupt and may have little chance of recovering the money owed.
A)special creditor
B)preferred creditor
C)general creditor
D)universal creditor

Question

Quizplus · Accepted Answer

If a debtor gets into financial difficulties and cannot meet her obligations,even a minor noncompliance with Article 9 may cause the creditor to lose his preferred claim to the personal property of the debtor.A creditor who loses his secured interest is only a general creditor if the debtor is declared bankrupt.As a general creditor in bankruptcy proceedings,he may have little chance of recovering the money owed by the debtor because of the relatively low priority of such claims.

If a Creditor Fails to Comply with Article 9 and Loses