John borrowed $20,000 from a bank,secured by his car.John allowed his insurance to lapse when the car was destroyed in a hurricane.John's only other assets are a boat that has no security interests associated with it,located in the garage at the house he rents,and a checking account at another bank with $600 in it.The bank sues John for payment of the $18,000 remaining balance on the car loan,and obtains a judgment against John for that amount.If John does not pay this judgment,what can the bank do at this point?

Question

Quizplus · Accepted Answer

Since John has no other assets except for the boat (with no security interests) and $600 in a checking account, the bank can obtain a writ of execution on the boat to try and satisfy the judgment. They can also obtain a writ of garnishment on the checking account to try and collect the $600. Therefore, the best choice is D, as it includes both options.

John Borrowed $20,000 from a Bank,secured by His Car