Terms to know Flashcards
Debtor
One who owes a debt or the performance of an obligation to another
Creditor
One to whom a debt or performance of an obligation is owed
Unsecured Creditor
Creditor with a claim against debtor for which no specific assets (called collateral) are pledged
Judgment Creditor
unsecured creditor who has obtained court judgment to establish liability
Secured Creditor
Creditor with a claim against debtor for which specific assets are pledged
Security Interest
property right contingent on nonpayment of a debt. UCC §9-109(a)
Foreclosure
cuts off debtor’s rights to pay debt and keep the collateral. UCC §9-601, 9-610
Right of Redemption
debtor’s right to keep the collateral by paying off the debt. UCC §9-623
Judicial foreclosure
Process accomplished by entry of court order
Non-judicial foreclosure
(power of sale/deed of trust in context of real property) process set by state law that does not involve the courts.
Account
A right to payment of a monetary obligation for property sold or services rendered §9-102(a)(2)
Account Debtor
Person obligated on an account §9-102(a)(3)
Accounts financing
borrowing against a group of accounts
Uniform Voidable Transactions Act
provides (2) types of voidable transfers:
- those made with actual intent to hinder, delay, or defraud §4(a)(1) unless buyer took in good faith and for reasonably equivalent value, transfer not voidable §8(a)
- those made without receiving reasonably equivalent value when debtor insolvent or rendered insolvent by transfer §5(a)
Petition
Document that commences a bankruptcy case