| Commentary

97 Security

| Commentary

97 Security

Where a debt is secured, the creditor has a means of recovering his money without resort to the bankruptcy jurisdiction. Thus, a debt on which a bankruptcy petition is based must, ordinarily, be unsecured1. In only two instances may a secured debt form the basis of a bankruptcy petition: first, where the secured creditor is prepared to give up his security for the benefit of all the bankrupt’s creditors in the event of a bankruptcy order being made2; and second, where the amount of the debt is greater than the value of the security, in which case the

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