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Questions and Answers
In lien stripping, what does 506(d) attempt to do?
In lien stripping, what does 506(d) attempt to do?
- Allow the debtor to keep the property without paying the secured creditor
- Convert unsecured claims into secured claims
- Void a lien to the extent that the court disallows the underlying claim that the lien secures (correct)
- Void all liens regardless of the underlying claim
What is the main characteristic of equally secured claims?
What is the main characteristic of equally secured claims?
- Debt exceeds the value of collateral
- Debt and collateral are the same (correct)
- Collateral exceeds the value of debt
- Debt is unsecured
What is the purpose of 506(a) bifurcation?
What is the purpose of 506(a) bifurcation?
- To convert unsecured claims into secured claims
- To divide loans into secured and unsecured portions (correct)
- To prioritize secured creditors over unsecured creditors
- To void all secured claims
What characterizes over secured claims?
What characterizes over secured claims?
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What is the main characteristic of an over secured claim?
What is the main characteristic of an over secured claim?
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What is the purpose of 506(a) bifurcation?
What is the purpose of 506(a) bifurcation?
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What creates 'secured claims' and 'secured creditors'?
What creates 'secured claims' and 'secured creditors'?
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In lien stripping, what does 506(d) attempt to do?
In lien stripping, what does 506(d) attempt to do?
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