Which one of the following is most apt to protect an individual creditor's interests in a formal bankruptcy proceeding?

Question

Quizplus · Accepted Answer

Holding a lien on specific assets ensures that the creditor has a secured claim on those assets in the event of the bankrupt firm's liquidation. This provides the creditor with a higher priority in the distribution of the proceeds from the sale of those assets, compared to unsecured creditors. This makes it more likely that the creditor will recover their investment or debt in full or in part. Therefore, having a lien on specific assets is the most apt measure to protect an individual creditor's interests in a formal bankruptcy proceeding.

Which One of the Following Is Most Apt to Protect