Where is bankruptcy like to come up? UCC Art 9 Question

How to:
Step 1: Determine the amounts of all creditor claims.
Step 2: Separate claims into classes by priority
Step 3: Proof of claim
Step 4: Distributions

Relief for D against SP just by the nature of the proceeding
Strong arms unperfected SPs
Unperfected SP no longer a secured at date of petition. This is a bad day for the SP.

Stops collection
Creditor who violates a stay faces: fines, liability to claims for damages (including punitive), and their collection activities are voided, voidable, or they have to undo it. See Bankr. Code § 362(k). Collection activity is broadly defined “applicable to all entities” against “any act.

BUT! SP may push Ct to lift stay and/or may press D to give more colleteral if SP is undersecured.
AND! In all cases bankruptcy gives secured creditors the right to be paid at least the value of its collateral.


Stops acceleration
In both Chapter 11 cases and Chapter 13 cases, a repayment plan usually can reinstate an executory contractual payment schedule by reversing prepetition acceleration, curing defaults, and compensating the losses caused by the defaults by providing for the payment of interest upon overdue amounts and reimbursing attorney’s fees and legal costs incurred by the SP. But cant cure after foreclosure.