Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

absolute-bar rule

Read a random definition: blocked income

A quick definition of absolute-bar rule:

The absolute-bar rule is a law that says if a creditor sells something that a borrower used as collateral for a loan in a way that is not fair, they cannot ask the borrower to pay any remaining debt. For example, if someone borrows money and uses their car as collateral, the creditor cannot sell the car for much less than it is worth and then ask the borrower to pay the difference. The law requires that the creditor sell the collateral in a fair way and notify the borrower before doing so. This rule is part of the Uniform Commercial Code and has been adopted by California.

A more thorough explanation:

The absolute-bar rule is a legal principle that prevents a creditor from obtaining a deficiency judgment if they dispose of collateral in a commercially unreasonable manner. This means that if a debtor defaults on a loan and the creditor takes possession of the collateral (such as a car or house), they must sell it in a way that is fair and reasonable. If they do not, they cannot seek additional payment from the debtor.

For example, the Uniform Commercial Code (UCC) and the California Commercial Code (COM) both require that creditors dispose of collateral in a commercially reasonable manner. They also require that debtors be notified before the collateral is sold. If a creditor fails to follow these rules and sells the collateral for less than it is worth, they cannot seek a deficiency judgment against the debtor.

One example of the absolute-bar rule in action is the case of Beardmore v. Am. Summit Fin. Holdings, L.L.C. In this case, the court applied the absolute-bar rule even though the Texas legislature had abandoned it. This was because the creditor had sold the collateral before the law changed, so they were still subject to the old rule.

Overall, the absolute-bar rule is an important protection for debtors. It ensures that creditors cannot take advantage of them by selling their collateral for less than it is worth and then seeking additional payment.

absolute privilege | abstention

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
i literally just need one A so i can relax before my ED decision
WorthlessAttractiveZombie
9:38
oh that's right USC might release
soapy
9:43
USC still has not looked at my app
WorthlessAttractiveZombie
9:43
when did you submit soapy?
soapy
9:44
10/16
WorthlessAttractiveZombie
9:44
to be fair it took them almost 2 months for me to go under review
soapy
9:44
Feelin a bit stressed, as I've got no date change for Michigan either despite applying 10/7
WorthlessAttractiveZombie
9:45
I have not had a date change either for Mich but I've seen people get in without one so who knows
I applied 9/25 to like 6 schools and some (Houston) have no date change yet so dw
soapy
9:46
But do people get in without addresses going long?
WorthlessAttractiveZombie
9:46
it's tough to tell because a lot of people type out their addresses long to begin with
soapy
9:46
Ah. I didn't. Looking back, my Mich supplement kind of sucks, so there's that
Mich overrated (Dean Z please let me in even tho i didnt apply and I am below both 25ths)
ClassyPleasantHeron
10:01
The "date changes" at Michigan really don't mean anything. We had to do them in undergrad admissions whenever a Georgia applicant picked the country instead of the state, because we'd have to remove the TOEFL requirement and reassign the application from the international application readers.
soapy
10:06
Classy, does that mean they may look at your application, and that look doesn't necessarily trigger any date change?
1a2b3c4d26z
10:06
Man
1a2b3c4d26z
10:07
Walkin to the bus
1a2b3c4d26z
10:07
What a good day to get into law school
ClassyPleasantHeron
10:11
@soapy: I don't know for sure about the law school. For undergrad, once the application is complete, it's assigned to a reader the following Monday. If we had to make any changes, it's because a reader saw something that needed to be changed and the application needed to be re-read after that change.
soapy
10:12
Ahh, got it. Thank you for the insight!
ClassyPleasantHeron
10:14
You're welcome. FWIW, I have no idea what's up with the address changes. We didn't have to do any of that, except for the Georgia state vs country kinds of things.
soapy
10:15
I've heard it theorized that some schools will change the address from "St." --> "Street" as they prepare to send out admissions packets. That's the rumor, anyways.
i think it just indicates a change in status like under review or stages of review
my stanford address went long as soon as it was marked complete lmao
soapy
10:25
I saw some Reddit adcom say that they can see any time we refresh the status checker; I wonder if it's a red flag if an applicant's checked it like 50 times in a day?
soapy
10:25
Also, can we send another LoR to a school that we've already applied to?
soapy
10:26
Or another essay?
10:30
i'll allow it
soapy
10:31
<3 thanks Fart Butt
1a2b3c4d26z
10:31
If I get rejected by a school bc I check my statuses during work then it wasn’t meant to be
LSD+ is ad-free, with DMs, discounts, case briefs & more.