Creditor's Rights Flashcards
Usually a party cannot be held liable on a negotiable instrument unless…
it bears her signature or the signature of an authorized representative.
(even if its a married couple & account is held WRoS)
The doctrine of necessaries requires that a spouse will be liable on a note for….
medical expenses for their spouse or child.
When an account is held in joint tenancy with the right of survivorship, a judgment creditor can….
reach the debtor’s share of the account.
A debtor’s share of an account is measured…
in proportion to their net contributions.
If an account is held by joint tenants by the entirety, a judgment creditor….
can reach the entire account, because it is held equally by spouses.
If a judgment creditor can reach an account, they will have….
a lien on the debtor’s right to receive money in the bank account.
There is a presumption that when an account is owned by a husband and wife, they own the account…
equally, by the entirety.
After 21 days for the entry of a judgment order, a creditor should seek to collect a judgment by filing….
a Suggestion in Garnishment.
A Suggestion in Garnishment requests the court where the judgment was entered to issue a…
writ of execution and garnishment on the party’s bank account to reach the judgment debtor’s share in the account.
A debtor may claim a _______ ___ to exempt a creditor from reaching property of his/her choosing up to $5,000 in value.
homestead exemption
(TRUE/FALSE): Each spouse may claim a homestead exemption of $5,000 to keep a creditor from garnishing their wages held in a joint bank account.
TRUE.
Transfers between an indebted spouse and the other spouse are….
presumed to be fraudulent and are voidable at the suit of a creditor.
Property held by tenancy by the entirety can be used only to satisfy…
joint debts of spouses.
If actual intent to delay, hinder, or defraud a creditor is proved, a conveyance may be avoided by that creditor unless the conveyance….
is to a BFP for value and without notice.
“Badges of fraud” such as lack of consideration and when the transferror retains possession of the property establish…
a rebuttable presumption of the intent to defraud.
A voluntary conveyance is one made for less than fair market value while…
the debtor is insolvent or which renders the debtor insolvent.
To be a present creditor, ones claim must have arisen before….
the transfer being attacked.
Present creditors can avoid…
voluntary or fraudulent conveyances.
Future creditors are creditors whose claims arose…
after the transfer was made.
Future creditors may attack only conveyances made with….
actual fraud.
An insolvent debtor may generally make a transfer of his assets to a…
bona fide creditor on account of an existing indebtedness.
Fraud requires what burden of proof?
clear and convincing evidence.
An abstract of judgment from a Virginia court in one jurisdiction, docketed in a Virginia circuit court of another jurisdiction, will create a judgment lien on any real estate owned by the judgment debtor….
in the jurisdiction where the judgment was recorded.
As to liens on motor vehicles, liens are perfected by having the lien noted….
on the title to the vehicle, by registering the security interest with the DMV.
Where a conveyance is a gift by an insolvent debtor [voluntary transfer], a then-existing creditor should….
file suit in circuit court asking the court to find the conveyance void.
If an insolvent debtor makes a conveyance for fair value, it will be….
permissible and not void, because it is simply a substitute of assets and not harmful to creditors.
A preference among creditors is permitted so long as it is a…
bona fide payment for full value.
When a stockholder of an insolvent corporation (which is also a debtor of the stockholder) had corporate assets transferred to the stockholder to satisfy his claim against the coporation, it may be considered a…
voidable fraudulent preference of creditor.
A notice of pendency is one that gives…
notice to a title-holder that property is the subject of pending litigation.
