Question 1

Once a writ of execution has been issued, the debtor cannot pay the judgment and redeem the property until after a sale has taken place.

Accepted Answer

A) True 
 B)False  False

Question 2

In a few states, statutes allow the homestead exemption only if the judgment debtor has a family.

Accepted Answer

A) True 
 B)False  True

Question 3

A default occurs when a debtor fails to pay a creditor as promised.

Accepted Answer

A) True 
 B)False  True

Question 4

An artisan's lien is effective only if a creditor has possession of the property.

Accepted Answer

A) True 
 B)False

Question 5

Oscar refuses to pay Petra $500 in cash on their contract to repair Oscar's washing machine, which Petra still possesses at her repair shop. Petra's lien on the machine will terminate

Accepted Answer

A)  if Petra continues to maintain possession. 
B)  if Petra does not file a written notice of lien within thirty days. 
C)  if Petra voluntarily surrenders possession. 
D)  within thirty days. 
A)  if Petra continues to maintain possession. 
B)  if Petra does not file a written notice of lien within thirty days. 
C)  if Petra voluntarily surrenders possession. 
D)  within thirty days.

Question 6

A mechanic's lien is possessory.

Accepted Answer

A) True 
 B)False

Question 7

If a debtor does not pay a mechanic's lien, the debtor's property can be sold to sat?isfy the debt.

Accepted Answer

A) True 
 B)False

Question 8

Fact Pattern 24-2 
Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 24-2. If Nina recovers less than she is owed, she can realize the difference from

Accepted Answer

A)  any property that Mary owns. 
B)  only exempt property that Mary owns. 
C)  only nonexempt property that Mary owns. 
D)  property that any other member of Mary's family owns. 
A)  any property that Mary owns. 
B)  only exempt property that Mary owns. 
C)  only nonexempt property that Mary owns. 
D)  property that any other member of Mary's family owns.

Question 9

Jessie's debt to Kayla is past due. Kayla brings a legal action against Jessie to collect the debt. Kayla asks the court to order Liberty Bank, in which Jessie has an account, to pay a portion of the funds to Kayla. This is a request for

Accepted Answer

A)  a writ of execution. 
B)  an order of garnishment. 
C)  an order that would violate most state laws. 
D)  a composition agreement. 
A)  a writ of execution. 
B)  an order of garnishment. 
C)  an order that would violate most state laws. 
D)  a composition agreement.

Question 10

Fact Pattern 24-2 
Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 24-2. Other property Mary may own that may be ex?empt from satisfaction of judgment debts includes

Accepted Answer

A)  any property that Mary wishes to exempt. 
B)  investments that Mary has made in her family's businesses. 
C)  recreational vehicles that Mary uses on weekends. 
D)  tools that Mary uses in her trade. 
A)  any property that Mary wishes to exempt. 
B)  investments that Mary has made in her family's businesses. 
C)  recreational vehicles that Mary uses on weekends. 
D)  tools that Mary uses in her trade.

Question 11

Bertram, Chaka, and Dougal are co-sureties of Erica's debt to Finance Loan Company. Bertram pays Erica's entire debt. Bertram's right to seek proportionate pay?ments from Chaka and Dougal is the right of

Accepted Answer

A)  contribution. 
B)  redemption. 
C)  reimbursement. 
D)  subrogation. 
A)  contribution. 
B)  redemption. 
C)  reimbursement. 
D)  subrogation.

Question 12

Friendly Credit Corporation (FCC) believes that Gary may dispose of the assets that FCC expects to receive as payment for Gary's debt before FCC can obtain a judgment. FCC may ask a court to issue a writ of

Accepted Answer

A)  attachment. 
B)  contribution. 
C)  execution. 
D)  redemption. 
A)  attachment. 
B)  contribution. 
C)  execution. 
D)  redemption.

Question 13

A material change in a loan contract between a creditor and a debtor dis?charges a surety only to the extent that the surety suffers a loss.

Accepted Answer

A) True 
 B)False

Question 14

A creditor's composition agreement may be entirely enforceable.

Accepted Answer

A) True 
 B)False

Question 15

There is no limit to the amount that can be taken from a debtor's weekly take-home pay through garnishment.

Accepted Answer

A) True 
 B)False

Question 16

Maggie is a surety for Juli's debt to Bill. Bill and Juli decide to make material changes to the original contract without consulting Maggie. Maggie is

Accepted Answer

A)  still bound by the contract. 
B)  discharged completely. 
C)  still bound by the contract, but allowed to make additional changes to the contract. 
D)  still bound by the contract unless she contests it within 30 days of the changes. 
A)  still bound by the contract. 
B)  discharged completely. 
C)  still bound by the contract, but allowed to make additional changes to the contract. 
D)  still bound by the contract unless she contests it within 30 days of the changes.

Question 17

Helene's debt to Imprints Printers is past due. Imprints obtains a judgment against Helene, but she refuses to pay it. Imprints asks the court for an order that directs the sheriff to seize and sell any of Helene's nonexempt real or personal property that is within the court's geographic jurisdiction. This is a request for

Accepted Answer

A)  a writ of execution. 
B)  a composition agreement. 
C)  an order that would violate most state laws. 
D)  an order of garnishment. 
A)  a writ of execution. 
B)  a composition agreement. 
C)  an order that would violate most state laws. 
D)  an order of garnishment.

Question 18

A court awards a judgment to Alice, who is the creditor, against Ada, who is the debtor. After the judgment, Alice requests a court order to seize Ada's property to ensure that the judgment will be collectible. This is

Accepted Answer

A)  a judicial lien. 
B)  a writ of attachment. 
C)  a writ of execution. 
D)  a violation of most state laws. 
A)  a judicial lien. 
B)  a writ of attachment. 
C)  a writ of execution. 
D)  a violation of most state laws.

Question 19

Sasha's debt to Tully is past due. Tully brings a legal action against Sasha to collect the debt. To ensure that a judgment in Tully's favor will be collectible, he asks the court to order the seizure of Sasha's property. This is a request for

Accepted Answer

A)  a contract of suretyship. 
B)  an order that would violate most state laws. 
C)  a writ of attachment. 
D)  an order of receivership. 
A)  a contract of suretyship. 
B)  an order that would violate most state laws. 
C)  a writ of attachment. 
D)  an order of receivership.

Question 20

Fact Pattern 24-2 
Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 24-2. Nina may recover

Accepted Answer

A)  $0. 
B)  $30,000. 
C)  $50,000. 
D)  $60,000. 
A)  $0. 
B)  $30,000. 
C)  $50,000. 
D)  $60,000.

Exam 24: Other Creditors Remedies and Suretyship

Once a writ of execution has been issued, the debtor cannot pay the judgment and redeem the property until after a sale has taken place.

In a few states, statutes allow the homestead exemption only if the judgment debtor has a family.

A default occurs when a debtor fails to pay a creditor as promised.

An artisan's lien is effective only if a creditor has possession of the property.

Oscar refuses to pay Petra $500 in cash on their contract to repair Oscar's washing machine, which Petra still possesses at her repair shop. Petra's lien on the machine will terminate

A mechanic's lien is possessory.

If a debtor does not pay a mechanic's lien, the debtor's property can be sold to sat?isfy the debt.

Fact Pattern 24-2 Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000. -Refer to Fact Pattern 24-2. If Nina recovers less than she is owed, she can realize the difference from

Jessie's debt to Kayla is past due. Kayla brings a legal action against Jessie to collect the debt. Kayla asks the court to order Liberty Bank, in which Jessie has an account, to pay a portion of the funds to Kayla. This is a request for

Bertram, Chaka, and Dougal are co-sureties of Erica's debt to Finance Loan Company. Bertram pays Erica's entire debt. Bertram's right to seek proportionate pay?ments from Chaka and Dougal is the right of

Friendly Credit Corporation (FCC) believes that Gary may dispose of the assets that FCC expects to receive as payment for Gary's debt before FCC can obtain a judgment. FCC may ask a court to issue a writ of

A material change in a loan contract between a creditor and a debtor dis?charges a surety only to the extent that the surety suffers a loss.

A creditor's composition agreement may be entirely enforceable.

There is no limit to the amount that can be taken from a debtor's weekly take-home pay through garnishment.

Maggie is a surety for Juli's debt to Bill. Bill and Juli decide to make material changes to the original contract without consulting Maggie. Maggie is

A court awards a judgment to Alice, who is the creditor, against Ada, who is the debtor. After the judgment, Alice requests a court order to seize Ada's property to ensure that the judgment will be collectible. This is

Sasha's debt to Tully is past due. Tully brings a legal action against Sasha to collect the debt. To ensure that a judgment in Tully's favor will be collectible, he asks the court to order the seizure of Sasha's property. This is a request for

Fact Pattern 24-2 Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000. -Refer to Fact Pattern 24-2. Nina may recover

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