Creditors Rights Flashcards
How long does the creditor’s right to enforce a j’ment last?
20 years
Once 20-year j’ment enforcement period expires, can it be extended?
Yes, by motion to the court that rendered the j’ment.
What is the Uniform Enforcement of Foreign Judgments Act?
Means of domesticating sister state j’ments
How to enforce sister state judgement under Uniform Enforcement of Foreign J’ment Act.
Creditor needs to:
- Register the j’ment in office of the clerk of the court where the j’ment is sought to be enforced
- Notify the defendant of the registration in writing.
What’s the basic rule re J’ment Cr’or remedies?
They may use all of a D’or’s property to satisfy his claim except exempt property. Remedies designed to allow the Cr’or to obtain liens on all of the D’or’s assets.
Can someone (like a spouse) be held liable on a negotiable instrument if they didn’t sign it?
No, must bear their signature (or auth’d rep).
What is the doctrine of necessaries?
Where spouse shares the duty to pay for necessary expenses (like their daughter’s medical bills), they’re equally liable for K’s (or tort liability) .
Are spouses responsible for the other spouse’s K or tort liability?
No (whether before or after marriage).
Can a lien attach to j’ment debtors’ principal residence held by spouses as tenants by the entirety?
No
For accounts held in jt tenancy w/ ROS, can a Cr’or of 1 of the owners, who is a j’ment debtor, reach the D’or’s share of the account?
Yes
What’s the o’ship presumption regarding an account owned by a husband and wife?
That they own it equally
How should a J’ment Cr’or collect on the D’or’s bank account?
After 21 days after the entry of any judgment order, they should file a SUGGESTION IN GARNISHMENT that requests Clerk’s Office (of ct where j’ment was entered) issue a WRIT OF EXECUTION AND GARNISHMENT on the bank account.
What is the VA Homestead exemption? What are the amounts?
Allows all VA residents to claim a homestead exemption until the maximum allowable amount is exhausted.
May be claimed in any property worth up to $5000 ($10k if 65 or older).
Plus $500 for each dependent
Amount is $25k if real or personal property is used as the PRINCIPAL RESIDENCE
What is the Poor Debtor’s Exemption?
Every VA resident may claim the following as exempt, IN ADDITION TO HOMESTEAD:
- Clothing up to $1k
- Household Furnishings up to $5k
- Trade tools up to $10k
- Motor Vehicles up to $6k
- Heirlooms up to $5k
- Burial plots up to $5k
- Sentimental items
What is a mechanic’s lien?
Gives security to those who add value to REAL PROPERTY (through labor or supply of materials) valued at $150 OR MORE.
Gen’l K’or must file a memo of lien, along w/ a certification he mailed a copy of the memo to the affected owner, within 90 DAYS OF COMPLETION of the work.
What is a LIEN OF MECHANIC FOR REPAIRS?
Mechanic obtains a possessory lien when not paid for making REQUESTED REPAIRS TO PERSONAL PROPERTY.
Mechanic can RETAIN POSSESSION of property until JUST AND RSN CHARGES are paid.
When repairs are to property at the request of a security interest holder, lien can’t exceed $1,000.
What is a FRAUDULENT CONVEYANCE?
Allows creditors to obtain liens on
- Property that the debtor transferred to HINDER, DELAY OR DEFRAUD Cr’ors.
- GIFTS made by D’or WHILE INSOLVENT.
What is Cr’or’s recourse as to FRAUDULENT CONVEYANCE?
If actual intent to delay, hinder or defraud any Cr’or is proved, conveyance can be AVOIDED
UNLESS made to a BFP W/O NOTICE
What is a VOLUNTARY CONVEYANCE?
Gifts that RENDER THE D’OR INSOLVENT or that were made WHILE D’OR WAS INSOLVENT
may be AVOIDED by PRESENT CR’ORS
Can J’ment Cr’or of 1 spouse void conveyance from both spouses (when tenants by the entirety) to 1 spouse?
No. H & W may convey property held by the entirety to 1 spouse free from liens or claims of creditors, and no Q of fraud is involved.
Can J’ment Cr’or have interest/lien in property held by spouses as tenants by the entirety when Cr’or’s claim is against 1 spouse?
No
Can a BFP be a Creditor?
Yes, as long as a bona fide loan was outstanding at the time
What factors do courts consider when determining whether fraudulent conveyance was done w/ actual intent to hinder, delay, defraud?
- Tr’or RETAINED AN INTEREST IN OR POSSESSION OF the property
- Transfer was BETWEEN FAMILY MEMBERS for allegedly antecedent debt
Can a D’or transfer property to one of his Cr’or’s for sole purpose of preferring that Cr’or?
Yes
