Bruce Normile files a petition in bankruptcy. Albert Rendlen is a particularly angry unsecured creditor who wants to continue to attempt to collect a debt owed to him by Bruce.
A. The only thing that Albert may do is ask the sheriff to garnish Bruce's wages.
B. Albert is out of luck because an automatic stay will be in effect that prevents unsecured creditors from taking any steps to collect their debts.
C. Albert may continue to call Bruce and ask him when he will be paying his debt but cannot file a lawsuit or otherwise use the court system to collect the debt.
D. Albert may file a lawsuit or otherwise use the court system to collect the debt, but he cannot communicate in any form with Bruce.
Kansas City Royals star catcher Salvador Perez is signing autographs at Kauffman Stadium in Kansas City and George Parker slips a promissory note in the amount of $350,000 "payable to the order of George Parker" on demand in between autograph seekers. Salvador signs the promissory note thinking it was just an autograph. Parker transfers the promissory note to Kirksville attorney Jay Benson in exchange for $300,000. Jay takes the note in good faith and without notice of any defenses. Jay presents the note to Salvador and demands payment. As to these facts, which statement is true?
A. Jay is a holder in due course but will not be able to enforce the note because he received it subject to personal defenses.
B. Jay is a holder in due course but will not be able to enforce the note because he received it subject to real defenses.
C. Jay is a holder, but not a holder in due course because he did not give value for the instrument.
D. Jay is a holder in due course and is entitled to enforce the promissory note.