Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 5

Question with Sample Answer-Creditors' Remedies. Kanahara is employed by Cross-Bar Packing Corp. and earns take-home pay of $400 per week. He is $2,000 in debt to Holiday Department Store for goods purchased on credit over the past eight months. Most of this property is nonex­empt and is located in Kanahara's apartment. Kanahara is in default on his payments to Holiday. Holiday learns that Kanahara has a girlfriend in another state and that he plans on giving her most of this property for Christmas. Discuss what actions should be taken by Holiday to collect the debt owed by Kanahara.