Suppose that the bankruptcy law firm had previously loaned $20,000 to Henry Anderson. The law firm filed a financing statement showing that the loan was secured by five mid-sized trucks. What would have happened with respect to this loan during the bankruptcy proceedings?

Question

Christopher Hardy

Business

15 October, 12:56

Suppose that the bankruptcy law firm had previously loaned $20,000 to Henry Anderson. The law firm filed a financing statement showing that the loan was secured by five mid-sized trucks. What would have happened with respect to this loan during the bankruptcy proceedings?

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Answers (1)

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Mike Jimenez · Answer 1

Answer: This loan would would have priority over the other unsecured claims in this bankruptcy case.

Explanation:

Since the trucks are secured collateral the loan is a secure loan. It will be the priority in the bankruptcy case since the other claims were unsecured. The law firm would have a right to the trucks since he owed them 20,000$ and put them up as collateral.

Everything that was an unsecured loan does not have anything to take from and will be a loss for the other companies who filed against Henry Anderson.