Beth entered into a guaranty agreement with a furniture store in order for her sister, Sue, to be able to buy furniture on credit from the store. There is a security agreement with the furniture pledged as collateral. Sue ceases to make the payments because the furniture is defective. Several months later Sue receives a bankruptcy relieving all her debts. Who owes what to whom? What are the responsibilities of each party? The furniture store, Sue, and Beth?
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