J 24 Flashcards
Larry, a longtime North Carolina resident, retired and bought a vacation home on Smith Mountain Lake in Franklin County, Virginia.
Larry befriended Bob, his next-door neighbor and longtime Franklin County resident.
Bob cultivated a small farm, sold produce at the local farmer’s market, and lived off the land after his divorce.
Bob asked Larry for a $50,000 loan to purchase a boat, explaining he was expecting cash from his real estate business.
Larry agreed and loaned Bob $50,000 with a valid promissory note requiring repayment within 90 days.
Bob bought the boat, and Larry accidentally damaged a nearby Cabin Cruiser while driving it with Bob’s permission.
The owners of the Cabin Cruiser (the Millers) sued Larry and obtained a $60,000 judgment against him in the Franklin County Circuit Court.
The Millers obtained a judgment lien against Larry in Franklin County.
Larry demanded repayment from Bob, but Bob could not pay due to lack of funds and admitted financial difficulties.
Bob confessed his real estate business was unprofitable, and most of his assets, including his home, were inherited from his father.
Larry filed suit against Bob in Franklin County Circuit Court and obtained a $50,000 judgment, which the clerk docketed.
Larry now seeks to enforce the judgment to recover the loan amount.
Q: What steps should Larry take to force the sale of Bob’s lake house?
Q: How can Larry protect his interest from Bob selling the house?
Q: What conditions are required for the sale?
A: Larry should file an equitable action in the Franklin County Circuit Court to enforce his judgment lien and obtain a decree of sale.
A: File a memorandum of lis pendens with the court, specifying details of the case and judgment, to bind subsequent purchasers.
A: If rents and profits from the property cannot satisfy the judgment in five years, the court will order a sale.
Q: What is the first step Larry should take?
Q: What does the writ authorize?
Q: What timeline must be followed?
Q: What alternative action could Larry take?
A: Request a writ of fieri facias (writ of execution) from the court clerk 21 days after judgment.
A: It commands the sheriff to levy upon Bob’s personal property, sell it, and use the proceeds to satisfy the judgment.
A: The sheriff must:
1. Fix the time and place of sale.
2. Post notice at least 10 days before the sale.
3. Return the writ with details of actions taken within 90 days.
A: File a detinue action to claim possession of specific tangible property instead of seeking sale proceeds.
Q: What are general exemptions Bob might claim?
Poor debtor exemptions, including:
Spousal support (to the extent necessary for support).
Family heirlooms (up to $5,000).
Clothing (up to $1,000).
Home furnishings (up to $5,000).
Tools of trade (up to $10,000).
Vehicle (up to $6,000; increased to $10,000 effective July 1, 2024).
Q: Are there specific exemptions for farmers?
A: Yes, exemptions include:
Tractor (up to $3,000).
Fertilizer (up to $1,000).
Q: How does Bob’s situation align with these exemptions?
A: Homestead exemption: Up to $25,000 for the primary residence (increased to $50,000 effective July 1, 2024).
Poor debtor exemptions, including:
Spousal support (to the extent necessary for support).
Family heirlooms (up to $5,000).
Clothing (up to $1,000).
Home furnishings (up to $5,000).
Tools of trade (up to $10,000).
Vehicle (up to $6,000; increased to $10,000 effective July 1, 2024).
A: Yes, exemptions include:
Tractor (up to $3,000).
Fertilizer (up to $1,000).
A: Bob likely qualifies for exemptions based on his farming occupation, low income, and spousal support.
Q: How long is the Millers’ judgment lien against Larry valid?
Q: Can the lien be extended?
Q: What is required for the extension?
A: Recording a certificate in the clerk’s office specifying the lien details and requesting the extension.
A: The lien is valid for 10 years.
A: Yes, it can be extended twice for additional 10-year periods by filing a certificate in the circuit court before the expiration of each period.
A: Recording a certificate in the clerk’s office specifying the lien details and requesting the extension.
