Exam 28: A: Creditors Rights and Remedies

Fact Pattern 28-4B 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 28-4B.Mary will receive

Mike owes $12,000 to Nora,$6,000 to Owen,and $6,000 to Pat.The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them,to be divided proportionately.This is

A creditor's composition agreement is usually held to be unenforceable.

Fact Pattern 28-3B (Questions Dillon and Evan are brothers.They agree to act as guarantors on a loan made by their sister,Fiona.Fiona defaults on the payments and Dillon re?fuses to pay.Evan pays the debt. -Refer to Fact Pattern 28-3B.Evan can recover from Dillon under

A pipe in Gert's house springs a leak.Gert contracts with Holly's Plumbing & Construction Company to repair the pipe and fix the dam?age to Gert's house.Gert pays 10 percent of the price in advance.Holly's does the work,but Gert refuses to pay the rest of the price.What can Holly's do,and how is it done?

Fact Pattern 28-3B (Questions Dillon and Evan are brothers.They agree to act as guarantors on a loan made by their sister,Fiona.Fiona defaults on the payments and Dillon re?fuses to pay.Evan pays the debt. -Refer to Fact Pattern 28-3B.Evan can recover from Fiona under

Suchin's debt to Trixie is past due.Trixie obtains a judgment against Suchin to collect the debt,but Suchin refuses to pay.Trixie asks the court to order the seizure and sale of Suchin's property.This is a request for

Modern statutes permit the holder of an artisan's lien to foreclose and sell the property subject to the lien to sat?isfy the debt.

Fact Pattern 28-4B 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 28-4B.If Nina recovers less than she is owed,she can realize the difference from

With a guaranty arrangement,the guarantor is secondarily liable.

Bartleby owes $5,000 to Countryside Credit Union.As a prejudg?ment remedy to collect the debt,Countryside could use

Fact Pattern 28-1B Chocolate! Chocolate! Corporation is a new company that needs to borrow money to meet its payroll.Dayna,president and owner of Chocolate! Chocolate!,asks Evermore Credit Union to loan the funds to Chocolate! Chocolate! -Refer to Fact Pattern 28-1B.If Evermore insists that Dayna sign the loan applica?tion,making her personally liable for payment only if Chocolate! Chocolate! de?faults,Dayna will be

Personal property that is most often exempt from satisfaction of judgment debts does not include livestock.

Subrogation refers to the right of a co-surety to recover from the other co-sureties the amount paid above his or her proportionate share of a debt.

A surety can assert his or her own bankruptcy as a defense to avoid liability on a principal debtor's obligation.

A creditor can garnish almost all types of property.

A surety is not entitled to receive from the debtor outlays made on behalf of the suretyship arrangement.

Fact Pattern 28-1B Chocolate! Chocolate! Corporation is a new company that needs to borrow money to meet its payroll.Dayna,president and owner of Chocolate! Chocolate!,asks Evermore Credit Union to loan the funds to Chocolate! Chocolate! -Refer to Fact Pattern 28-1B.If Evermore insists that Dayna sign the loan applica?tion,making her personally liable for payment whether or not Chocolate! Chocolate! defaults,Dayna will be

Under federal law,an employer can dismiss an employee because his or her wages are being garnished.

Fact Pattern 28-2B Rico signs a lease on behalf of Start-Up Games,Inc. ,with Tower Office Suites.As part of the lease,Rico signs a document titled "GUARANTY," which states that it is "an absolute guaranty" of the lease's performance. -Refer to Fact Pattern 28-2B.The reason for the result in the previous question is that