Creditor's Rights

Question 1

Usually a party cannot be held liable on a negotiable instrument unless…

Answer 1

it bears her signature or the signature of an authorized representative.

(even if its a married couple & account is held WRoS)

Question 2

The doctrine of necessaries requires that a spouse will be liable on a note for….

Answer 2

medical expenses for their spouse or child.

Question 3

When an account is held in joint tenancy with the right of survivorship, a judgment creditor can….

Answer 3

reach the debtor’s share of the account.

Question 3

A debtor’s share of an account is measured…

Answer 3

in proportion to their net contributions.

Question 4

If an account is held by joint tenants by the entirety, a judgment creditor….

Answer 4

can reach the entire account, because it is held equally by spouses.

Question 5

If a judgment creditor can reach an account, they will have….

Answer 5

a lien on the debtor’s right to receive money in the bank account.

Question 6

There is a presumption that when an account is owned by a husband and wife, they own the account…

Answer 6

equally, by the entirety.

Question 7

After 21 days for the entry of a judgment order, a creditor should seek to collect a judgment by filing….

Answer 7

a Suggestion in Garnishment.

Question 8

A Suggestion in Garnishment requests the court where the judgment was entered to issue a…

Answer 8

writ of execution and garnishment on the party’s bank account to reach the judgment debtor’s share in the account.

Question 9

A debtor may claim a _______ ___ to exempt a creditor from reaching property of his/her choosing up to $5,000 in value.

Answer 9

homestead exemption

Question 10

(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.

Answer 10

TRUE.

Question 11

Transfers between an indebted spouse and the other spouse are….

Answer 11

presumed to be fraudulent and are voidable at the suit of a creditor.

Question 12

Property held by tenancy by the entirety can be used only to satisfy…

Answer 12

joint debts of spouses.

Question 13

If actual intent to delay, hinder, or defraud a creditor is proved, a conveyance may be avoided by that creditor unless the conveyance….

Answer 13

is to a BFP for value and without notice.

Question 14

“Badges of fraud” such as lack of consideration and when the transferror retains possession of the property establish…

Answer 14

a rebuttable presumption of the intent to defraud.

Question 15

A voluntary conveyance is one made for less than fair market value while…

Answer 15

the debtor is insolvent or which renders the debtor insolvent.

Question 16

To be a present creditor, ones claim must have arisen before….

Answer 16

the transfer being attacked.

Question 17

Present creditors can avoid…

Answer 17

voluntary or fraudulent conveyances.

Question 18

Future creditors are creditors whose claims arose…

Answer 18

after the transfer was made.

Question 19

Future creditors may attack only conveyances made with….

Answer 19

actual fraud.

Question 20

An insolvent debtor may generally make a transfer of his assets to a…

Answer 20

bona fide creditor on account of an existing indebtedness.

Question 21

Fraud requires what burden of proof?

Answer 21

clear and convincing evidence.

Question 22

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….

Answer 22

in the jurisdiction where the judgment was recorded.

Question 23

As to liens on motor vehicles, liens are perfected by having the lien noted….

Answer 23

on the title to the vehicle, by registering the security interest with the DMV.

Question 24

Where a conveyance is a gift by an insolvent debtor [voluntary transfer], a then-existing creditor should….

Answer 24

file suit in circuit court asking the court to find the conveyance void.

Question 25

If an insolvent debtor makes a conveyance for fair value, it will be….

Answer 25

permissible and not void, because it is simply a substitute of assets and not harmful to creditors.

Question 26

A preference among creditors is permitted so long as it is a…

Answer 26

bona fide payment for full value.

Question 27

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…

Answer 27

voidable fraudulent preference of creditor.

Question 28

A notice of pendency is one that gives…

Answer 28

notice to a title-holder that property is the subject of pending litigation.