The adequate protection doctrine provides that: a. creditors must be protected against all losses in bankruptcy. b. all debtors must receive adequate physical protection from creditors. c. secured creditors should not lose their security as a result of an automatic stay. d. unsecured creditors should be protected from the aggressive behavior of secured creditors.

Question

Camilla Wu

Social Studies

27 January, 10:41

The adequate protection doctrine provides that: a. creditors must be protected against all losses in bankruptcy. b. all debtors must receive adequate physical protection from creditors. c. secured creditors should not lose their security as a result of an automatic stay. d. unsecured creditors should be protected from the aggressive behavior of secured creditors.

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Answers (1)

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Kasey Hutchinson · Answer 1

The adequate protection doctrine provides that secured creditors should not lose their security as a result of an automatic stay.

Explanation:

The adequate protection doctrine serves as excessive security for secured creditors. In order to ensure that the value of the collateral kept with the creditor does not depreciate, the adequate protection doctrine is brought into force. This doctrine not only facilitates the creditor but also takes care of the debtor by keeping the value of the collateral unchanged during the term.