Exam 21: Creditors Rights and Bankruptcy

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

Ross and Sally agree to guarantee Tim's debt.Ross's maximum liabil?ity is $15,000,and Sally's is $10,000.Tim owes $10,000 and is in default.Ross pays the creditor the entire amount.In the ab?sence of an agree?ment to the contrary,Ross can recover from Sally

Larry borrows money from Joan.To use a writ of execu?tion as a remedy,Joan must first

A debtor's car may be exempt from satisfaction of a judgment debt.

Domestic-support obligations are dischargeable in bankruptcy.

Any debtor who is liable on a claim held by a creditor may file for bankruptcy.

Lulu joins with other creditors to force Mikhail,a debtor,into bankruptcy.One of the goals of bankruptcy law is to

Ian's mortgage debt to Jeff is past due.Jeff brings a legal action against Ian to collect the debt.Jeff asks the court to order the sale of the mortgaged property and the payment of a portion of the proceeds to Jeff.This is a request for

Rita is a surety for Stu's loan from Total Finance Company.Rita's right to "step into the shoes" of Total Finance,after paying Stu's debt,and ex?er?cise any of the Total Finance's rights against Stu is the right of

A guarantor is released from his or her obligation if a debtor cannot pay it.

A contract of suretyship must be in writing to be enforceable.

Smartt Software Company borrows $10,000 from Term 'N All Loans,Inc. ,but cannot repay the loan when it comes due.Term 'N All refuses to ex?tend the time for repayment unless Smartt can provide an acceptable surety.Uno Venture Corporation agrees to act as a surety for the loan af?ter Smartt offers the firm a discount on software and shows Uno financial statements,compiled with Term 'N All's assistance,that misrepresent Smartt's financial situation.Later,after Uno uses the discount to buy software,Smartt again defaults on repayment of the loan,and Term 'N All files a suit against Uno to collect the amount of the debt.Is Uno liable? Why or why not?

All of a debtor's wages can be gar?nished.

A Chapter 13 plan can be initiated only by the filing of an involuntary petition.

A homestead exemption allows a debt to be considered paid for an amount less than was actually owed.

Heidi is a trustee for a federal bankruptcy court.Heidi's duties include

Khali's debt to Lew is past due.Lew obtains a judgment against Khali to collect the debt,but Khali refuses to pay.Lew asks the court to order My-T Quik Mart,Khali's employer,to pay a portion of Khali's paycheck to Lew.This is a request for

A creditor with a mechanic's lien on property can sell the property to sat?isfy the debt.

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

The principal duty of a trustee is to liquidate and close up the debtor's es?tate as quickly as possible.