Creditor’s Rights Flashcards
Every judgment for money rendered in Virginia by any state or federal court or by confession of judgment creates a
a lien on all of the real estate in which the defendant has an interest, whether presently owned or subsequently acquired, from the time the judgment is recorded on the judgment lien docket.
What must judgment creditor do to enforce lien against debtor?
must record on the judgment lien docket maintained by the clerk for the circuit court within the jurisdiction of which the land is located.
What must judgment creditor do to enforce lien against debtor?
must record on the judgment lien docket maintained by the clerk for the circuit court within the jurisdiction of which the land is located.
What is a garnishment? What does it do?
It is a court proceeding in which a creditor (garnishor) asks a court to order a third party (garnishee) who owes an intangible debt to the debtor, or otherwise holds assets belonging to the debtor (such as wages or bank accounts), to turn them over to the creditor instead of the debtor.
future creditor may set aside a transfer by a debtor that is
Fraudulent or constructively fraudulent even if the transfer does not involve goods that the creditor has furnished to the debtor.
Can creditor obtain wedding ring in satisfaction for debt via writ of execution?
no. No dollar limits are placed on these rings. Consequently, the debtor can protect this ring from the plaintiff’s writ of execution.
What must a holder of attachment lien do for lien to be effective against a bona fide purchaser (BFP)
holder of an attachment lien must file a memorandum of attachment or a lis pendens with the clerk’s office of the court where the property is located for the lien of attachment to be effective against a bona fide purchaser (BFP).
If holder doesn’t file memorandum lis pendis, buyer is not deemed to have personal knowledge of lien and buyer’s claim to the land is superior to the lender’s claim
How long is a judgment rendered in CC valid for?
20 yrs
What must a general contractor, subcontractor, laborer, or materialman do to perfect a mechanic’s lien?
file a memorandum of lien no later than 90 days from the last day of the month in which the contractor last performed labor or furnished material, and in no event later than 90 days from the time the structure is completed, or the work is otherwise terminated.
memorandum must be filed in the clerk’s office in the county or city in which the building or structure is located and mailed to the owner of the property, and if the claimant is not the general contractor, to the general contractor as well. The claimant must verify the memorandum by oath (i.e., affidavit). The claimant also must file a certification of mailing of a copy of the memorandum of lien to the owner and, if required, to the general contractor.
In general, can a preferential transfer made by a debtor to a creditor for an antecedent debt owed to that creditor be set aside?
No
A gift, conveyance, assignment, or transfer of real or personal property that is intended to defraud creditors may be
Set aside
A creditor bears the burden of establishing the transferor’s intent to defraud by
Clear and convincing evidence
Can a creditor obtain funds from an attorney’s client trust account?
Yes. Funds are the corpus of a trust of which the attorney is the trustee and client is the beneficiary. There is no debtor creditor relationship btwn client and firm and money does not belong to client
When do specific date elements for notice of a writ of execution apply?
When debtor-creditor relationship exists between the parties,,, not when writ is executed against a 3rd party who is holding debtor’s property.
In general, party cant be held liable on a negotiable instrument unless
it bears her signature or the signature of an authorized rep
Doctrine of necessities
person who does not sign a note is liable on the note if the note is used to pay for the support of their spouse or children, such as medical bills
Garnishment/writ of fieri facias can be filed
after 21 days have run from date of entry of judgment order
Suggestion in garnishment requests clerk to
issue a writ of execution and garnishment on parties’ bank account to reach judgment debtors’ shares in the bank account
Homestead exemption from creditors
parents supporting a dependent minor child residing with him can hold exempt from wage garnishment an additional amount for the support of the child or children
