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QUESTION 4 B & B Bakery just filed for Chapter 7 bankruptcy. B & B is in default on a loan from Arco Finance. Arco
QUESTION 4 B & B Bakery just filed for Chapter 7 bankruptcy. B & B is in default on a loan from Arco Finance. Arco has a perfected security interest in B & B's equipment to secure payment of this debt. Under these facts: A. Arco can file a lawsuit against B & B in state court to collect the loan. B. Arco can immediately repossess and sell B & B's equipment pursuant to its security interest. C. Arco cannot sue B & B in state court and it cannot immediately repossess the equipment due to an automatic stay. but Arco will have priority to the equipment in the bankruptcy action D. Arco no longer has a right to be paid: the bankruptcy filing terminated this right
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