Question
raig borrows money from GMAC secured by his Chevrolet Silverado pickup truck. GMAC files a financing statement on January 15, 2021. Craig borrows money from
raig borrows money from GMAC secured by his Chevrolet Silverado pickup truck. GMAC files a financing statement on January 15, 2021. Craig borrows money from Personal Finance Company on June 13, 2021 secured by the same Chevrolet Silverado pickup truck. Craig files a petition for bankruptcy on June 15, 2021. Personal Finance Company files its financing statement on June 17, 2021. What is the result?
A. | GMAC, the bankruptcy trustee and Personal Finance Company will all share in the proceeds of the Silverado on a pro rata basis. | |
B. | GMAC has the first position (priority), the bankruptcy trustee is second (priority) and Personal Finance Company is in third position (priority). | |
C. | Craig's trustee in bankruptcy has first position (priority), GMAC is in second position (priority) and Personal Finance Company is in third position (priority). | |
D. | GMAC has the first position (priority), Personal Finance Company is in second position (priority) and the bankruptcy is in third position (priority). |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started