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Who typically utilizes senior debt?
In context to finance, senior debt refers to a fort of debt - often issued as senior loans - which takes priority over other forms, specifically junior debts and is often issued by corporate bodies.
Can creditor go after you discharged in court for a secured item?
A creditor cant take you to court over a secured debt. However, if they have a security interest in any of your property, they can still foreclose on that property.
What happens when two secured parties claim security interests in the same collateral?
When there are two secured parties claiming security interest in the same collateral, the creditor that is perfected (having filed a financing statement) will have priority over the interests of an unsecured creditor or unperfected secured party
Would your car be a unsecured priority?
"Unsecured priority" refers to a type of debt. It means (1) that there is no lien guaranteeing (securing) the debt, and (2) that the Bankruptcy Code gives it priority over other unsecured debts for public policy reasons--in other words a priority debt gets paid before non-priority debts. So, a car cannot be unsecured priority, because it is an asset and not a debt. If you are asking whether you can protect your car in bankruptcy, that is a different question, and the answer depends on the exemption laws in your state. If you obtained a loan to purchase the car, then that loan is most likely secured by the car (i.e. there is a lien), and you cannot remove the lien unless the value of the car is below the current loan amount and you purchased your car more than 910 days before you file for bankruptcy. For more info, take a look at the link below. The above is provided for informational purposes only. It is not intended as legal advice, and does not create an attorney-client relationship.
Does an auto repair shop lien for unpaid repairs have priority over the bank who has secured interest and title?
No. The bank has a prior lien. The mechanic's lien takes second place.
What is the difference between unsecured priority and unsecured non-priority?
Examples of unsecured priority debts are, child and/or spousal support, delinquent taxes, rent and utility arrears, any fines or restitution(s) that have been ordered by the court. Unsecured non-priority are, store cards, unsecured personal loans (unless held by a bank where the person has accounts), credit cards, and so forth.
What does an adult only child of an unmarried parent do when that parent dies with over 14000 in charged off debt and an estate worth less than 3500?
Debt(s) are not the responsibility of a surviving child or family member other than a spouse which in this case is not applicable. Whatever amount is in the estate that is not exempt under the state law will be used to pay any outstanding debts according to their priority. Secured creditors are always paid first, unsecured debts such as credit cards are considered low priority and if there are no funds available for payment the debt is considered uncollectible. Be advised that there are those unethical creditors who will attempt to coerce surviving family members into taking responsibility forthe deceased debts, they are NOT legally obligated to do so.
Can a judgment be put on a Certificate of deposit which has a secured loan on 75 percent of it?
Yes, a judgment can be placed on a Certificate of Deposit (CD) even if it has a secured loan against it. However, the lender with the secured loan has priority over the funds in the CD, meaning they would be paid first in the event of default. The judgment creditor may be able to access the remaining balance after the secured loan obligations are satisfied, but this depends on the specific circumstances and local laws.
Which lien has first priority?
Liens are given priority in the order that they are filed. Liens for property taxes, however, will be given priority in the case of a foreclosure sale. But after any back taxes are paid, then the lien filed in first in chronological order will be given the highest priority.
Does higher interest get paid first?
No, there is no rule that loans or bonds at higher interest rates take priority over those at lower interest rates. In bankruptcy, secured debts take priority over unsecured debts. For corporations or governments in bankruptcy, the seniority of the debt also determines the order in which the debts are paid. In both cases, the interest rate is not a determining factor.If you are asking about paying off consumer credit, it is true that it generally works out that paying off the higher interest rate loans (e.g., credit cards) first is the best strategy, simply because the interest on those can make it virtually impossible to make any headway on paying off the total personal debt. Again, that's not a rule, but the arithmetic usually works out that way.
What are examples of Debentures?
Debentures are a type of debt instrument that companies issue to raise capital, representing a loan made by investors to the issuer. Examples include convertible debentures, which can be converted into equity shares, and secured debentures, which are backed by specific assets of the company as collateral. Other types include unsubordinated debentures, which have priority over other debts in case of liquidation, and zero-coupon debentures, which do not pay interest but are issued at a discount to their face value.
What are the Advantages of debentures over other debt securities?
Debentures offer several advantages over other debt securities, including typically lower interest rates due to their unsecured nature and reliance on the issuer's creditworthiness. They provide flexibility in financing as they can be issued in various forms, such as convertible or non-convertible, catering to different investor preferences. Additionally, debentures often have longer maturities, allowing companies to secure funding for extended periods without the need for frequent refinancing. Lastly, they usually rank lower in priority compared to secured loans, which can make them more appealing to investors seeking higher returns with corresponding risks.
