Bankruptcy and Collections MIDTERM Flashcards
Do you imagine yourself doing this full time?
No <3
Why are bankruptcy and collections important?
Protects from harass-y credit predators, What debt collectors can, should, and must say
Unsecure debt
debt that isn’t tied to any assets (credit cards)
Secured debts
Debt that is tied to asset(s) (Bob B’s restaurant equipment)
Revolving Debt
A debt without a fixed payment plan
Installment Debt
A debt with a specific payment plan
T/F Debts cannot be multiple types simultaneously
False
default (on)
fail to do something (pay a debt)
3 (broad) categories of debts
Statutory debt, contract debt (mortgage), tort-based debt (child support)
What’s the most common type of debt?
contract debt
og creditor will ASSIGN their debt to
A collection agency or a debt buyer
FDCPA
Fair Debt Collections Protection Act (1978)
FDCPA
Fair debt collection practices Act
A lien is
the right to an asset until a debt is paid
Georgia is a contract state, you have to sign a contract to be liable for debt(?)
not liable for your spouse’s debts
a personal guarantor is
An individuals “trust me bro” person (mom on my lease)
Zombie debts are
accounts that died and ‘came back to life’
How long does a defendant have to answer a claim?
30 days from date served
Give an example of this professor being purposely difficult, despite his claims to attempt otherwise
this professor thinks that 6,000 is not less than 15,000, but only less than 10,000
Who maintains real estate records in GA?
The superior courts
How can creditors enforce judgements against defandants?
wage garnishment, levy bank funds, recording a lien against debtors property
How long can one period of garnishing wages last?
Wage garnishments now last for up to 1095 days (3 years). If not fufilled in that time, another wage garnishments is filed
A creditor is
someone with a legal obligation to be fulfilled a debt or obligation
A debtor is
a person or company who owes a debt that is or will become due
To default is to
fail to do something required by law, or fail to pay a debt
A security interest is
an interest in property of a debtor that secures payment to the creditor
a secured creditor is
someone with a legal interest in collateral
an unsecured creditor is
someone having no collateral or security agreement to assure payment of its claim
Where is debtor-creditor law found in O.C.G.A.?
O.C.G.A.§§ 18-1-1 to 18-5-5
Title 11 of the U.S. Code covers what?
Bankruptcy law, defining the rights and responsibilities of debtors and creditors
At what point do bankruptcy laws come into effect, and GA debtor-creditor laws become inapplicable?
When a bankruptcy petition has been filed
Alimony is what type of debt?
tort-based debt
Student loans are what type of debt?
contract debt
Income tax is what type of debt?
Statuatory debt
A promissory note is
a document between a borrower and a lender, the instrument through which debts are created
Installments plan vs balloon note
Installments are installments, and balloon notes are combos of installments and single payments by a date certain
Judgment is
judicial determiniation of liability
Credit card debts can be moved (assigned or sold) after defaulting for how long?
60 days
How long after defaulting on a bad debt can a lawsuit be filed and serviced?
180 days
How can judgments be fulfilled?
With settlements or Garnishment, Bank Levy
What’s a Writ of Fi Fa?
An order from the magistrate court to record a lien on the judgment debtor’s property
To charge off debt means what?
For a creditor who has a debtor that isn’t paying to send the debt to a law firm or a collection agency because they can’t collect it
What must a debt collector tell a debtor in a debt validation notice?
- statement that the notice is from a debt collector
- Name and mailing info
- name of the creditor
- itemization of debt and itemization date
- current amount of debt as of when the validation info is provided
How long does a debtor have to dispute a debt collector’s notice?
30 days
T/F There is a jury in magistrate court
False
The statute of limitations on an open account is how long?
4 years
The statute of limitations on written contracts is how long after contract breach?
6 years
A collection lawsuit is generally filed in what county?
The debtor’s county
If defendant fails to file an answer within 30 days of being served, they are in what?
Default
