Creditor's Rights

Question 1

Filing an abstract of judgment secured in one VA circuit ct w the clerk of the Virginia circuit ct of a different jx where debtor owns real property is generally ___

Answer 1

sufficient to attach a judgment lien on that real property

Question 2

Can it be attached by creditor to satisfy claim? Property held in tenancy by entirety

Answer 2

No, property held as tenants by the entirety by married couple cannot be attached by a creditor to satisfy claim against only one spouse

Question 3

What proportion does joint bank account belong to

Answer 3

belongs, during lifetimes of all parties, to parties in proportion to the net contributions by each to the sums on deposit

Question 4

Who does it belong to: Joint Bank Account held by married persons

Answer 4

belongs to them equally, unless there is clear and convincing evidence of a different intent

Question 5

How to perfect security interest in a car

Answer 5

perfected by a notation of the security interest on the certificate of title

Question 6

Only one method permitted for perfecting security interest on a motor vehicle, even if the motor vehicle is a consumer good that is auto perfected under UCC article 9

Question 7

When a client furnishes a retainer or advance deposit against fees to an attrny, the money belongs to ____ and must be placed in ____ and ___ holds the funds in a ____

Answer 7

belongs to the client and must be placed in the law firm’s trust account and attrny holds funds in a trust

Question 8

The funds are the ___ of a trust of which the attorney is the ___ and the client is the ___

Answer 8

corpus of a trust of which the attorney is the trustee and client is the beneficiary

NO debtor - creditor relationship between client and firm

Question 9

Can debtor protect engagement ring from creditor’s writ of execution?

Answer 9

Yes, wedding and engagement rings are protected from writs, regardless of dollar amount

Question 10

Can creditor reach an account held by tenancy in common?

Answer 10

Yes, creditor (judgment debtor) can reach debtor’s share of the account

Question 11

Can one spouse’s interest of an equally owned joint bank account be reached by judgment debtor?

Answer 11

yes, there is a presumption that when an account is owned by a husband and wife, they own it equally so jjudgment interest owed by one spouse can be reached

Question 12

Steps to obtain judgment on bank account

Answer 12

after 21 days had run from date of entry of any judgment order, P should file a garnishment, which requests clerk’s office of ct where judgment was entered, to issue a writ of execution and garnishment on parties’ bank account to reach judgment debtors’ shares in the bank account

Question 13

Intercepting Fraudulent or Voluntary transfers by debtor

Answer 13

Creditors can upset fraudulent or voluntary transfers made by their debtor, restoring title to the transferred property to the debtor, which allows the creditor to levy the property and sell it

Question 14

Money judgements create a ___ on ___ ____ ___ in which D has an interest, whether ___ ___ or ___ acquired, from the time the ____ is recorded on judgment lien docket

Answer 14

lien on the real estate D has an interest in whether presently owned or subsequently acquired from time the judgment is recorded on judgment lien docket

Question 15

Two categories of creditors

Answer 15

1) existing creditors

2) Future Creditors

Question 16

Existing Creditors are creditors who have

Answer 16

Have liquidated their claims against the debtor by agreement or judgment at the time of the challenged transfer

Question 17

Future creditors

Answer 17

have obtained or reduced their claims to judgment after the challenged transfer

Question 18

Existing creditors may challenge either ___ or ___ conveyences made for ___ ___ ___ ___ ___

Answer 18

either voluntary or fraudulent conveyences made for less than the fair market value

Question 19

Future creditors may only challenge transfers made with

Answer 19

the intent to defraud

Question 21

Fraudulent conveyances are

Answer 21

gifts, conveyences or assignment/transfer of real or personal property intended to defraud creditors

Question 22

Voluntary transfer by Insolvent Transferor is a

Answer 22

conveyance, assignment or transfer of real or personal property made by an insolvent transferor made for less than fair mrkt value and may be set aside by existing creditors

Question 23

When can an action to Set aside conveyance be brought?

Answer 23

creditor may bring even before obtaining a judgment

Question 24

The filing of action to set aside conveyance creates a ___

Answer 24

lien against the transferred property

Question 25

If any person has a claim, legal or equitable, for damages for breach of K, he may sue for an ___ of debtor’s property

Answer 25

Attachment

Question 26

Attachment is a proper pre trial levy of debtor’s property when debtor is

Answer 26

1) removing or abt to change domicile

2) removing or intending to remove property out of VA

3) abt to convert property into money/security/ to hinder his creditors

4) assigned or disposed of or about to assign or dispose of his estate

5) absconded or is abt to abscond w the property

6) a foreign corp

Question 27

Memorandum lis pendis is a

Answer 27

public act that allows a lien of attachment to be effective against a bona fide purchaser

Question 28

For lien to be effective against bona fide purchaser:

Answer 28

holder of an attachment lien must file the lis pendens w clerk’s office of ct where property is located for lien of attachment to be effective against Bona fide purchaser

Question 29

Writ of Fieri Facias (writ of execution)

Answer 29

commands sheriff to find debtor’s property, seize it and sell it to satisfy judgment

Question 30

Writ of Fieri Facias: Lien attaches upon

Answer 30

levy of the property

Question 31

Proper levy occurs when

Answer 31

property is subject to the power and view of Sheriff

Question 32

In a consumer transaction, creditor may retain collateral in full satisfaction of debtor’s obligation if

Answer 32

debtor has not paid at least 60% of the cash price in case of purchase money security interest

Question 33

Porcess: To retain collateral in satisfaction of debt, creditor must

Answer 33

send the consumer a notice of creditor’s proposal to take such action

Question 34

If consumer does not respond to the proposal with ___ ___ ____ __ ___ ___ ___ creditor may retain collateral in full satisfaction of consumer’s obligation

Answer 34

20 days after proposal is sent

Question 35

Mechanic’s lien: mechanic is entitled to a mechanic’s possessory lien of up to and including ____ that is ___

Answer 35

$1k that is superior to prior security interests, including perfected security interests

Question 36

Mechanic’s lien: remainder of mechanic’s lien is ____

Answer 36

inferior to all prior security interests and liens

Question 37

Mechanic may sell property at auction w/o ct involvement to recover costs of repairs if value of property is

Answer 37

less than $10k so long as shop follows stat requiremenys

Question 38

Mechanic’s lien: where value of property to be sold exceeds $25k, mechanic must ___

Answer 38

petition ct for county or city where property is located

Question 39

UCC Implied warranty of title

Answer 39

In all sales Ks, seller auto warrants that he is

1) conveying good title

2) transfer is rightful; and

3) goods are delivered free from any security interest of which buyer has no knowledge at time of K