REG — Quick Sheet
Debtor-Creditor & Bankruptcy
Read time: ~5 minutes
One-minute revision
- Attachment (vs. debtor) = value + debtor's rights + authenticated security agreement
- Perfection (vs. third parties) = filing, possession, control, or automatic (PMSI in consumer goods)
- Priority: perfected beats unperfected; between perfected, first to file or perfect
- PMSI inventory → perfect before delivery + notify; PMSI equipment → within 20 days
- Buyer in ordinary course takes free of the seller's security interest
- Preference window: 90 days (1 year for insiders)
- Distribution: secured → priority unsecured (support, admin, wages…) → general unsecured → equity