Overview

You won't be surprised that secured parties (creditors) in secured transactions have the right to repossess the collateral if the debtor materially defaults on the loan. However, you may wonder how the secured party does this. There are two types of repossession: judicial repossession (called replevin or sequestration depending on where you live) and self-help repossession. We will talk about both in this module.

Bankruptcy Basics

Perfection of secured transactions often has its most significant application when the debtor is in bankruptcy. This is so because bankruptcy proceedings are intended to protect the claims of all creditors, secured and unsecured. When a secured party can demonstrate that it has a perfected security interest in some collateral, then that party already has a priority to that collateral over unsecured creditors.

This week, we will begin a discussion into the basics of bankruptcy law by focusing on the types of bankruptcy proceedings.

Module Objectives

In this module, our activities, content, and assignments will help you do the following:

Determine rights of parties in case of a default
Identify the different type of bankruptcy filings

Module To-Do List

Here's everything you need to do and remember for this module:

Read the assigned texts and work through any other required resources
If your Team is on-call, prepare a case briefing according to the FIRAC method and post it on the Case Briefs Discussion Board
Join the Class on Tuesday and Thursday at 1:00pm via Zoom or in-person
Take the last quiz (on Chapter 30) on Thursday during class
Complete one Connect Assignment by Friday at midnight
Complete the Secured Transactions II Homework by Friday at midnight
Begin drafting your assigned Study Guide for the Final Exam