Author Question: Forever Yours, Inc has a secured and perfected security interest in Sally's big-screen TV. On the ... (Read 120 times)

Alygatorr01285 · **on:** Jun 24, 2018

Forever Yours, Inc has a secured and perfected security interest in Sally's big-screen TV. On the filing date of Sally's Chapter 7 petition, the balance of the debt owed to Forever Yours is 2,000. The value of the TV is estimated at 1,500. This means that Forever Yours
A)is secured for the entire debt, 2,000.
B)is unsecured for 500, the excess of the debt over the value of the TV.
C)has a high priority claim of 500. This means that Forever Yours, Inc. will be allowed 500 worth of other unsecured property before other unsecured creditors get anything.
D)is unsecured for the entire debt.

Question 2

If A's ocean cargo is thrown overboard in order to save a sinking ship and B's cargo is saved as a result, B must contribute to A for the loss.
Indicate whether the statement is true or false