Question

The adequate protection doctrine provides that: a. creditors must be protected against all losses in bankruptcy. b. all debtors must receive adequate physical protection from creditors. c. secured creditors should not lose their security as a result of an automatic stay. d. unsecured creditors should be protected from the aggressive behavior of secured creditors.

Answer 1

Answer:

The adequate protection doctrine provides that secured creditors should not lose their security as a result of an automatic stay.

Explanation:

• The adequate protection doctrine serves as excessive security for secured creditors.
• In order to ensure that the value of the collateral kept with the creditor does not depreciate, the adequate protection doctrine is brought into force.
• This doctrine not only facilitates the creditor but also takes care of the debtor by keeping the value of the collateral unchanged during the term.