Ontario Barrister and Solicitor Practice Exam

Question: 1 / 400

What remedy is available to a secured creditor of a bankrupt company that is not available to an unsecured creditor?

Filing for bankruptcy on behalf of the company

Seizing assets without obtaining a court judgement

A secured creditor is a creditor that has a right to seize the company's assets as collateral for the debt. This means that if the company cannot pay its debt, the creditor may take possession of the assets to recover the money owed. This is not an available option for an unsecured creditor, as they do not have any specific collateral to claim. Thus, option B is the correct answer as it refers to the unique power that a secured creditor has over an unsecured creditor.

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Participating in the reorganization process

Receiving full repayment before other creditors

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