Asked by Natali Hernandez-Chavez on Jul 07, 2024

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Verified

A creditor might try to obtain an advantage over other creditors by obtaining a(n) ________ on the debtor's property to secure an existing debt.

A) surety
B) preferential lien
C) presentment
D) equity of redemption

Preferential Lien

A lien that gives the creditor the right to be paid before other creditors if the debtor defaults or assets are liquidated.

Existing Debt

Financial obligations or loans that a person or entity is currently responsible for.

  • Distinguish between legitimate and fraudulent transactions, focusing on preferential payments during bankruptcy proceedings.
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Verified Answer

AB
Amani ByronJul 10, 2024
Final Answer :
B
Explanation :
A creditor might try to obtain an advantage over other creditors by obtaining a lien on the debtor's property to secure an existing debt.The creditor might seek to get the debtor's consent to a lien or to obtain a lien by legal process.Such liens are considered preferential liens.