Exam Rules - Creditor Rights

Question 1

What conveyances can a creditor set aside

Answer 1

A gift, conveyance, transfer, or assignment of real or personal property that is intended to defraud creditors can be set aside

Question 2

What conveyances may not be set aside

Answer 2

Conveyances to a bona fide purchaser who is unaware of the transferor’s fraudulent intent cannot be set aside

Question 3

What is the rule for conveyances to spouses

Answer 3

Conveyances to spouses are presumed to be fraudulent. Transferee spouse has the burden of proving through (1) clear and convincing evidence that the transfer was (2) not made with an intent to defraud or (3) was made for valuable consideration

Question 4

Is an advanced deposit a law firm’s property

Answer 4

No, when a client gives a firm an advanced deposit it is placed a client trust account. The firm then acts as a trust and the client is the beneficiary

Question 5

What is a writ of fieri facias

Answer 5

A writ of fiere facias is a lien against tangible personal property. It is addressed to the sheriff and commands him to sell the goods of a person against whom the judgment lien has been obtained to pay creditors. The writ may be levied on money. The lien is created when the clerk delivers the writ to the sheriff.

Question 6

Is money in a bank account tangible or intangible

Answer 6

Intangible

Question 7

How can a creditor levy intangible property

Answer 7

Through a garnishment, which is a levy on intangible property

Question 8

What is a proper levy

Answer 8

A proper levy occurs when the sheriff exercises dominion and control over the debtor’s property and undertakes such control

Question 9

Can a tenancy by the entirety be used to satisfy a debt

Answer 9

Property that is owned via a joint tenancy in the entirety can only be used to satisfy jointly held debts between the spouses. An individual spouse’s debt cannot be enforced against property held as tenancy by the entirety.