Question 1

A debtor is permitted to retain all or a portion of the family home so that the family will retain some form of shelter through which of the following exemptions?

Accepted Answer

The homestead exemption allows a debtor to retain all or a portion of the family home to ensure the family retains some form of shelter. This exemption is specifically designed to protect the value of a home from creditors during bankruptcy or other financial distress.

Question 2

A creditor has what type of lien when, through legal action, the creditor seizes a debtor's property to satisfy a debt?

Accepted Answer

A judicial lien is obtained through legal action, allowing a creditor to seize a debtor's property to satisfy a debt. Mechanic's and artisan's liens are specific types of liens related to labor or materials provided, and "True" and "Contempt" are not types of liens.

Question 3

Which of the following is NOT true when a judge orders a writ of execution?

Accepted Answer

The statement that any and all of a debtor's property can be seized to satisfy an obligation is not true. Only non-exempt property can be seized under a writ of execution, meaning certain property is protected or exempt from seizure.

Question 4

Which of the following is NOT true of wage garnishment?

Accepted Answer

States can impose their own restrictions on wage garnishment, including setting dollar limits, as long as they do not provide less protection than federal law.

Question 5

Which of the following is a court-ordered judgment permitting a local court officer, such as a sheriff, to seize a debtor's property before the entry of a final judgment in an underlying case?

Accepted Answer

Attachment is the correct answer because it refers to a legal process by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold for the benefit of the creditor, before a final judgment is issued in the case. This is done to secure the creditor's interest in the debtor's assets.

Question 6

A creditor who Pele borrowed money from went to court and asked for the court to bring Pele's checking account under court control until Pele had repaid the money due. This is an example of ________?

Accepted Answer

Attachment is a legal process by which a court orders the seizure or control of a debtor's property, such as a checking account, to secure the repayment of a debt.

Question 7

Some property is exempt from being seized by a creditor to satisfy the debt. The amount of this homestead exemption is:

Accepted Answer

The amount of the homestead exemption varies from state to state, reflecting differences in state laws and the cost of living across different regions.

Question 8

What is the purpose of a creditor seeking a court order for attachment?

Accepted Answer

A creditor seeks a court order for attachment to prevent a debtor from selling or hiding property, ensuring that the property remains available to satisfy the debt if the creditor wins the case.

Question 9

What happens if a debtor is successful in a legal action initiated by a creditor after a creditor attached property?

Accepted Answer

If a debtor is successful in a legal action initiated by a creditor after the creditor attached property, the debtor can recover damages for the losses suffered while deprived of the property. Additionally, if the property was wrongfully attached, the debtor may also recover punitive damages. This is to compensate the debtor for the wrongful act and to punish the creditor for the wrongful attachment.

Question 10

Joel, a creditor, had to foreclose on Georgian's loan. Joel had to sue Georgian in a local court. Joel received a judicial order that authorized a local law officer to seize and sell any of the Georgian's real or personal nonexempt property. What is the name of this order?

Accepted Answer

A writ of execution is the correct term for a judicial order that authorizes the seizure and sale of a debtor's property to satisfy a judgment.

Question 11

Which of the following are a class of items that are typically not exempt from seizure to satisfy a debt through a judicial lien?

Accepted Answer

Cell phones are typically not considered essential for basic living or work, unlike household items, tools for trade, clothing, or a vehicle, which may have exemptions to ensure the debtor can maintain a basic standard of living and ability to work.

Question 12

Matilda did not pay Tomas for services Tomas provided. Tomas went to court and sued to have Matilda's wages garnished. What type of lien was Tomas seeking?

Accepted Answer

Tomas was seeking a Judicial lien, which is obtained through court action to secure payment for a debt, such as unpaid services.

Question 13

What happens if an exemption filed in court by a debtor is limited to a certain amount of money?

Accepted Answer

The answer of What happens if an exemption filed in...

Question 14

How much may a debtor's wages be garnished, according to the Federal Consumer Credit Protection Act?

Accepted Answer

The correct answer is C because the Federal Consumer Credit Protection Act stipulates that a debtor must be able to keep the greater of the following two options: 75 percent of his or her weekly net income or 30 times the federal minimum wage. This law is designed to ensure that individuals have enough income to meet basic needs after garnishment.

Question 15

When can a creditor seek a writ of execution?

Accepted Answer

A writ of execution can be sought by a creditor after a court has entered a judgment in their favor in the underlying case. This legal process allows the creditor to enforce the judgment and collect what is owed by seizing and selling the debtor's assets. Choices B, C, D, and E do not accurately describe the standard procedure for seeking a writ of execution.

Question 16

Which of the following is NOT generally part of the procedure a creditor must follow before attaching?

Accepted Answer

Attaching property as part of debt collection typically does not require proving that the creditor has a secured interest in the property. Attachment is often a remedy for unsecured creditors to ensure payment of debts.

Question 17

A(n) ________ permits a debtor to retain all or a portion of the family home so that the family will have some form of shelter if other property is seized to satisfy a debt.

Accepted Answer

The homestead exemption is designed to protect the value of a home from property taxes and creditors following the death of a homeowner spouse. It allows a debtor to keep a portion of their home's value, ensuring the family retains shelter.

Question 18

After judgment is entered against Kylie in a suit for nonpayment by a creditor, the judge orders a local sheriff to seize and sell some of Kylie's valuable jewelry. This is an example of a(n) ________.

Accepted Answer

A Writ of Execution is a court order granted to enforce a judgment of possession obtained by a plaintiff from a court. When a judge orders a sheriff to seize and sell assets, such as jewelry, to satisfy a judgment, it is executed under a writ of execution.

Question 19

Which of the following was the result in Alcantar v. Sanchez, the case in the text involving whether the bank was responsible for conversion when it seized a joint account owned by a father and his sons to collect the debts on a writ of garnishment?

Accepted Answer

The court determined that without clear and convincing evidence indicating otherwise, the ownership of the funds should align with the net contributions. Therefore, the bank's seizure of the joint account for debt collection was deemed wrongful conversion.

Question 20

Which of the following statements accurately describes judicial liens?

Accepted Answer

Attachments, writ of execution, and garnishment are indeed types of judicial liens, which are legal claims against property to secure a debt or judgment.

Quiz 31: Other Creditors Remedies and Suretyship