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Simple English definitions for legal terms

strong-arm clause

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A quick definition of strong-arm clause:

A strong-arm clause is a rule in bankruptcy law that lets a trustee cancel a security interest if it wasn't properly recorded when the bankruptcy case began. This means that if someone owes money and used something as collateral, like a car or a house, but didn't follow the correct legal steps to make sure the creditor had a right to that property, the trustee can take it away and use it to pay off the debts.

A more thorough explanation:

A strong-arm clause is a provision in the Bankruptcy Code that gives the bankruptcy trustee the power to cancel a security interest that is not properly recorded when the bankruptcy case is filed. This means that if a creditor has a security interest in a debtor's property, but that interest is not legally recorded, the trustee can cancel it and sell the property to pay off the debtor's debts.

Let's say that John borrows money from a bank to buy a car. The bank takes a security interest in the car, which means that if John doesn't pay back the loan, the bank can repossess the car. However, the bank forgets to properly record the security interest with the state. Later, John files for bankruptcy. The trustee can use the strong-arm clause to cancel the bank's security interest and sell the car to pay off John's debts.

Another example could be a landlord who fails to properly record a security interest in a tenant's property. If the tenant files for bankruptcy, the trustee can use the strong-arm clause to cancel the landlord's security interest and sell the property to pay off the tenant's debts.

stripper well | strongly corroborated

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General chat about the legal profession.
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18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
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