Ch 15- Creditor-Debtor Relations and
Bankruptcy-Questions and Answers.
Creditor - Answer A person whom a debt is owed by another person (the debtor).
Debtor - Answer Under Article 9 of the Uniform Commercial Code, any party who owes
payment or performance of a secured obligation.
Adequate Protection Doctrine - Answer In bankruptcy law, a doctrine that protects secured
creditors from losing their security as a result of an automatic stay on legal proceedings by
creditors against the debtor once the debtor petitions for bankruptcy relief. In certain
circumstances, the bankruptcy court may provide adequate protection by requiring the debtor
or trustee to pay the creditor or provide additional guaranties to protect the creditor against the
losses suffered by the creditor as a result of the stay.
Artisan's Lien - Answer A possessory lien given to a person who has made improvements and
added value to another person's personal property as security for payment for services
performed.
Attachment - Answer One. In the context of secured transactions, the process by which a
security interest in property of another becomes enforceable. Two. In context of judicial liens, a
court-ordered seizure and taking into custody of property prior to the securing of a judgment
for a past-due debt.
Automatic Stay - Answer In the bankruptcy proceedings, the suspension of virtually all
litigation and other action by creditors against the debtor or the debtor's property; the stay is
effective the moment the debtor files a petition in bankruptcy.
Consumer-debtor - Answer An individual whose debts are primarily consumer debts (debts for
purchases made primarily for personal or household uses).
Co-surety - Answer A joint surety. One who assumes liability jointly with another surety for the
payment of an obligation.
Cram-down provision - Answer A provision of the Bankruptcy Code that allows a court to
confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has
accepted it. To exercise the court's right under this provision, the court must demonstrate that
the plan does not discriminate unfairly against any creditors and is fair and equitable.
Bankruptcy-Questions and Answers.
Creditor - Answer A person whom a debt is owed by another person (the debtor).
Debtor - Answer Under Article 9 of the Uniform Commercial Code, any party who owes
payment or performance of a secured obligation.
Adequate Protection Doctrine - Answer In bankruptcy law, a doctrine that protects secured
creditors from losing their security as a result of an automatic stay on legal proceedings by
creditors against the debtor once the debtor petitions for bankruptcy relief. In certain
circumstances, the bankruptcy court may provide adequate protection by requiring the debtor
or trustee to pay the creditor or provide additional guaranties to protect the creditor against the
losses suffered by the creditor as a result of the stay.
Artisan's Lien - Answer A possessory lien given to a person who has made improvements and
added value to another person's personal property as security for payment for services
performed.
Attachment - Answer One. In the context of secured transactions, the process by which a
security interest in property of another becomes enforceable. Two. In context of judicial liens, a
court-ordered seizure and taking into custody of property prior to the securing of a judgment
for a past-due debt.
Automatic Stay - Answer In the bankruptcy proceedings, the suspension of virtually all
litigation and other action by creditors against the debtor or the debtor's property; the stay is
effective the moment the debtor files a petition in bankruptcy.
Consumer-debtor - Answer An individual whose debts are primarily consumer debts (debts for
purchases made primarily for personal or household uses).
Co-surety - Answer A joint surety. One who assumes liability jointly with another surety for the
payment of an obligation.
Cram-down provision - Answer A provision of the Bankruptcy Code that allows a court to
confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has
accepted it. To exercise the court's right under this provision, the court must demonstrate that
the plan does not discriminate unfairly against any creditors and is fair and equitable.
