Hello. This question is incomplete. The full question is:
In St. Louis, Missouri, in August 2000, Richard Miller orally agreed to loan Jeff Miller $35,000 in exchange for a security interest in a 1999 Kodiak dump truck. The Millers did not put anything in writing concerning the loan, its repayment terms, or Richard's security interest or rights in the truck. Jeff used the amount of the loan to buy the truck, which he kept in his possession. In June 2004, Jeff filed a petition to obtain a discharge of his debts in bankruptcy. Richard claimed that he had a security interest in the truck and thus was entitled to any proceeds from its sale. What are a creditor's main concerns on a debtor's default? How does a creditor satisfy these concerns? What are the requirements for a creditor to have an enforceable security interest? Have these requirements been met in this case? Considering these points, what is the court likely to rule with respect to Richard's claim?
Answer and Explanation:
In such a case, the main concern of the creditor is the payment of the debt, which must be obtained through assets or guarantees, where, in fact, the creditor has priority over other possible creditors. For the creditor to have this right, he must place a security interest on top of the security already established. To do this, the lender will need to meet certain requirements such as having a guarantee or contract maintained in physical and written media, providing something of value or debtor and maintaining the debtor's rights in that guarantee.
In the case shown above, the creditor has not established a written guarantee or contract, as both the debtor and the creditor have issued a verbal contract, so we can guarantee that there was no agreement promoting the guarantee between them. In this case, Richard has no payment priority and will be paid just like the other creditors, when possible.