Question

If a breach of the peace might occur:

a. self-help repossession is the only option available to obtain the collateral.
b. the creditor must use court action to obtain the collateral.
c. the creditor is barred from repossessing the collateral.
d. the collateral reverts to the debtor.

Answer 1

If a breach of the peace might occur, the creditor must use court action to obtain the collateral.

Step-by-step explanation:

If a breach of the peace might occur, the creditor must use court action to obtain the collateral. In situations where there is a risk of the breach of peace, self-help repossession is not a viable option as it may lead to violence or disturbance of public order. The court action provides a legal process to protect the rights of both the creditor and the debtor and ensures a peaceful resolution.

Learn more about repossession and breach of peace