Creditor's Rights Flashcards
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 ___
sufficient to attach a judgment lien on that real property
Can it be attached by creditor to satisfy claim? Property held in tenancy by entirety
No, property held as tenants by the entirety by married couple cannot be attached by a creditor to satisfy claim against only one spouse
What proportion does joint bank account belong to
belongs, during lifetimes of all parties, to parties in proportion to the net contributions by each to the sums on deposit
Who does it belong to: Joint Bank Account held by married persons
belongs to them equally, unless there is clear and convincing evidence of a different intent
Security interest in a car is perfected by
a notation of the security interest on the certificate of title
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
register your lien on the vehicle’s certificate of title
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 ____
belongs to the client and must be placed in the law firm’s trust account and attrny holds funds in a trust
The funds are the ___ of a trust of which the attorney is the ___ and the client is the ___
corpus of a trust of which the attorney is the trustee and client is the beneficiary
NO debtor - creditor relationship between client and firm
Can debtor protect engagement ring from creditor’s writ of execution?
Yes, wedding and engagement rings are protected from writs, regardless of dollar amount
Can creditor reach an account held by tenancy in common?
Yes, creditor (judgment debtor) can reach debtor’s share of the account
Can one spouse’s interest of an equally owned joint bank account be reached by judgment debtor?
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
Steps to obtain judgment on bank account
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
Intercepting Fraudulent or Voluntary transfers by debtor
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
Money judgements create a ___ on ___ ____ ___ in which D has an interest, whether ___ ___ or ___ acquired, from the time the ____ is recorded on judgment lien docket
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
Two categories of creditors
1) existing creditors
2) Future Creditors
Existing Creditors are creditors who have
Have liquidated their claims against the debtor by agreement or judgment at the time of the challenged transfer
Future creditors
have obtained or reduced their claims to judgment after the challenged transfer
Existing creditors may challenge either ___ or ___ conveyences made for ___ ___ ___ ___ ___
either voluntary or fraudulent conveyences made for less than the fair market value
Future creditors may only challenge transfers made with
the intent to defraud
Fraudulent conveyances are
gifts, conveyences or assignment/transfer of real or personal property intended to defraud creditors
Voluntary transfer by Insolvent Transferor is a
Transfer made for less than fair mrkt value and may be set aside by existing creditors
When can an action to Set aside conveyance be brought?
creditor may bring even before obtaining a judgment
The filing of action to set aside conveyance creates a ___
lien against the transferred property
If any person has a claim, legal or equitable, for damages for breach of K, he may sue for an ___ of debtor’s property
Attachment
Attachment is a proper pre trial levy of debtor’s property when debtor is
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
Memorandum lis pendis is a
public act that allows a lien of attachment to be effective against a bona fide purchaser
For lien to be effective against bona fide purchaser:
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
Writ of Fieri Facias (writ of execution)
commands sheriff to find debtor’s property, seize it and sell it to satisfy judgment
Writ of Fieri Facias: Lien attaches upon
levy of the property
Proper levy occurs when
property is subject to the power and view of Sheriff
In a consumer transaction, creditor may retain collateral in full satisfaction of debtor’s obligation if
debtor has not paid at least 60% of the cash price in case of purchase money security interest
Porcess: To retain collateral in satisfaction of debt, creditor must
send the consumer a notice of creditor’s proposal to take such action
If consumer does not respond to the proposal within ___ days creditor may retain collateral in full satisfaction of consumer’s obligation
20 days after proposal is sent
Mechanic’s lien: mechanic is entitled to a mechanic’s possessory lien of up to and including ____ that is ___
$1k that is superior to prior security interests, including perfected security interests
Mechanic’s lien: remainder of mechanic’s lien is ____
inferior to all prior security interests and liens
Mechanic may sell property at auction w/o ct involvement to recover costs of repairs if value of property is
less than $10k so long as shop follows stat requiremenys
Mechanic’s lien: where value of property to be sold exceeds $25k, mechanic must ___
petition ct for county or city where property is located
UCC Implied warranty of title
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
