Michigan Collections Manager License Practice Test

What rights does a secured party have after obtaining a judgment?

1. To foreclose or enforce the claim based on date of agreement

2. Always requires a court hearing

3. Must wait for debtor consent

4. All rights revert to the debtor

The correct answer is: To foreclose or enforce the claim based on date of agreement

A secured party who has obtained a judgment has specific rights that allow them to enforce their claim against the debtor's assets. After gaining a court judgment, the secured party can proceed with collection efforts, which may include enforcing security interests or liens. This often leads to actions such as foreclosing on the collateral that was pledged to secure the debt, allowing the secured party to recover the owed amount. It's essential to recognize that this enforcement right is contingent upon the legal terms agreed upon in the security agreement, as well as applicable laws. Once a judgment is secured, the secured party is not bound by the timing of the original agreement to act on the court's decision. The other options do not accurately represent the rights conferred upon a secured party after obtaining a judgment. While some actions may require a court hearing, it is not a blanket requirement for all enforcement actions. Additionally, waiting for debtor consent is unnecessary; the secured party can act based on the judgment. Finally, the notion that all rights revert to the debtor is inaccurate, as the secured party retains the right to enforce the judgment and pursue recovery through the available legal means.