Ontario Barrister and Solicitor Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Ontario Barrister and Solicitor Exam with essential study materials, quizzes, and resources. Equip yourself with the knowledge needed to succeed in your legal career!

Practice this question and more.

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
Participating in the reorganization process
Receiving full repayment before other creditors

The correct answer is: 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.