Hasty Pastries declares bankruptcy,idling Hasty's delivery vehicles.The court can compel Hasty to make periodic cash payments to a credi?tor with a se?cured interest in the vehicles to offset the depreciation in their value.This is

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The scenario reflects the adequate protection doctrine, wherein the court can order the debtor to make cash payments to a creditor with a secured interest in the assets to compensate for the depreciation in the value of the collateral they hold. The purpose is to ensure that the creditor's interest remains adequately protected during the bankruptcy process. The avoidance doctrine pertains to the court's power to undo certain transactions that occurred before the bankruptcy filing. Preferential transfer refers to the debtor's favoring one creditor over others before filing for bankruptcy, while the automatic stay is a broad injunction that halts all collection activities against a debtor's assets once bankruptcy is filed.

Hasty Pastries Declares Bankruptcy,idling Hasty's Delivery Vehicles