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PaperclipPerfector  22d ago (text post)   2683 thread views

Friday Fun Thread for March 7, 2025

Be advised: this thread is not for serious in-depth discussion of weighty topics (we have a link for that), this thread is not for anything Culture War related. This thread is for Fun. You got jokes? Share 'em. You got silly questions? Ask 'em.

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I would also clarify that the upshot here isn't that the debtor gets to keep the truck. For the sake of argument, let's assume that sale of the truck will recover $50,000 after fees, which amount is exactly the same as the lien Creditor A claims against it. This is the only property of the estate available for distribution. Let's also assume that the debtor has $100,000 in total debt, and that the other $50,000 is from an unsecured loan from Creditor B. This is a straight Chapter 7 liquidation. If Creditor A's lien is valid, then Creditor a gets the full $50,000 proceeds and Creditor B gets nothing. Since the court ruled the lien was invalid, there's now $50,000 to be split between two unsecured creditors, and each would get $25,000.

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