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Credit & Collections > Midterm > Flashcards

Midterm Flashcards

1
Q

What is a Preferred Creditor

A

Has BEst priority due to statute

1st position

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2
Q

What is a Secured Creditor

A

2nd position

have claim to specific property of devtor due to contract

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3
Q

What is an Unsecured Creditor

A

3rd position lowest priority

no right to specific assets

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4
Q

What rights do Preferred Creditors follow?

A

Workers Compensation Act and Income Act

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5
Q

What rights do Secured Creditors follow

A

If its real property then its the land titles act

if personal property then its the personal property security Act

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6
Q

What rights do unsecured creditors come from

A

Civil Enforcement Act

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7
Q

Examples of a Secured Credit Agreement

A

Mortgages

General Security Agreements

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8
Q

Examples of a unsecure Credit Agreements

A

Promissory Notes
Lines of Credit
Credit Card Contracts

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9
Q

What are some self Creditor Self Collection Attempts

A
  1. Call debtor
  2. send letter demanding payment
  3. visit debtor at home or work
  4. give debt to a collection agency to colelct.
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10
Q

Problems with Self Collection Methods

A

Creditor could be sued by debtor for defamation
creditor could be charged with theft or sued for tort of converstation, if taking assets to satisfy debt
could be charged with harassment

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11
Q

What do Clients consider when Hiring the lawyer

A

Repuation and impression

Costs associated with hiring the lawyer

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12
Q

What do lawyers cosider when taking on a client?

A

potential conflict of interest
limitation deadline
facts of the case
lawyer’s existing workload

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13
Q

How to open a physical file?

A

Prepare the file folders and subfolders
labeling the file
creating and placing a file opening sheet on the file

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14
Q

How to open an Electronic File?

A

Create a new matter foler in the Lawyer’s directory

open the file in the law firm’s accounting software package

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15
Q

What is Limitation Date

A

Once Default of payment happens deadline to sue determined by the limitations act
usually 2-10 year rule

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16
Q

What is Legal assistants role with limiation date?

A

Write on file cover
record electronic diary
record on a paper diary

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17
Q

Who determines the limiatation Date

A

The lawyer

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18
Q

What are Immediate post file opening steps

A

Retainer letter
receipts of retainer funds
request and receipt of client documentation

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19
Q

What is a Secured Creditor

A

Gices a loan to the debtor
takes interest in debtor’s property
can take debtor’s property if debtor defualts on loan

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20
Q

what is an unsecured Creditor?

A

gives a loan to the debtor
no interest in debtors property
has simple promise frome the debtor to pay
must get judges if debtor defualts in order to try and get money.

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21
Q

what is in a secured credit contract

A

Name of secured creditor and debtor.
amount of money loan
repayment terms and conditions of the loan
assest given as security for the loan
address for service and contact info on both parties

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22
Q

Examples of secured credit contracts

A 
Land mortgage
chattel mortgage
conditional sales agreement
assignment of book debts
general security agreement
debenture
23
Q

How to resgister a Secured Credit Contract?

A

It gets registered at Personal Property Registery

Follows Personal Property Act

24
Q

What happens When Detor Defaults?

A
  • Debtor defaults
  • secured creditor attempts to collect
  • lawyer is hired
  • civil enforcement agency is hired and take assets
  • secured creditor keeps or sells assets to satisfy debt
  • secured creditor may sue if there is debt still owing
  • lawyer reports to client and closes file.
25
Q

When do you send a demand letter?

A

Prior to calling the Civil Enforcement Agency

26
Q

What is a demand letter?

A

Letter from lawyer to debtor
request payment of debt
usually send WITHOUT PREJUSDICE

27
Q

How to hire a Civil Enforcement Agency?

A

The lawyer will need a:

  1. Letter of instruction
  2. warrant
28
Q

Prior to seizure the civil enforcement agency prepare:

A

A notice of seizure

A notice of Surrender OR a bailee’s undertaking

29
Q

After seizure the civil enforcement agency

A

Prepares Bailiff report

Registers Notice of Seizure at Personal Property registry within 3 days of seizure

30
Q

What are post seizure creditor Options

A
  • sell property by private sale
  • sell property by public sale
  • lease or accept deferred payment from debtor
  • keep property to satisy debt
31
Q

Who is notified when seized property is sold?

A

the debtor
anoyone else known to be owner of the collateral
another creditor with subordinate interest in sized property
any other paty that has notified the secured creditor

32
Q

How is a notification of sale done

A

Through a Notice of Debtor of Intention to Dispose of Seized Property
20 days prior to sale

33
Q

Prior to the sale the debtor has the right to:

A
  1. right to redemption - pay debt in full

2. right of reinstatement - pay arrears and bring agreement back into good standing

34
Q

What is a demand Loan:

A

A loan that may or may not have monthly payments
has a provision in the contract that payment in full of the outstanding debt can be made at any time
credit card and comercial loans are often demand loans

35
Q

Contents of a Demand Letter?

A
  • Who the lawyer represents
  • how the debt came to be
  • enclosure of the loan document
  • exact amount of principak and interest owing
  • calcualtion of amount owing
  • deadline for payment
  • how payment is to be made
  • consequences of not making payment.
36
Q

What is a legal assistants role with the demand letter

A
  1. gather documents to prepare demand letter
  2. draft or edit demand letter
  3. calculate interest owing
  4. send to debtor by appropriate method
  5. Diarize file for day after payment deadline for follow-up
37
Q

Where can a collection Action be commenced

A

Provincial court of Alberta

court of Queens Bench of Alberta

38
Q

What are the options for a commencing document

A

Statement of claim

Civil Claim

39
Q

What info is in a commencing Document

A
  • Parties in the action
  • jusicial center
  • address for service
  • establishing the court has juristiction over matter
  • summary of debt
  • specific details of debt
  • confirmation of default in payment
  • demand for repayment has resulted in refusal to pay
  • claim judgment of a money award and other relief
40
Q

Where must a Affidavit of Service be filed?

A

Clerk of the court

41
Q

what is a liquidated claim?

A

Claim for specific sum of money

42
Q

What is an unliquidated claim?

A

claim for debt that is not easily calculated

43
Q

Procedure for liquidated Claim:

A
  1. Affidavit of Service
  2. Default of judgment
  3. Bill of costs
  4. Affidavit of Default
44
Q

Proedure for unliquidated claims?

A
  1. Affidavit of service
  2. noting in default
  3. application
  4. affidavit
  5. affidavit assessing damages
  6. affidavit of default
  7. draft order
45
Q

When is a liquidated claim prepared?

A

defendant filed either a statement of defence or demand for notice and did not serve it on the plaintiff
the defendant did nothing

46
Q

When is an unliquidated claim needed?

A

Defendant filed but did not serve statement of defence or demand notice

47
Q

What is Default Judgment

A

Official Pronoucement by court
announced defendant owes plainfidd
reviewed and signed by Clerk of the Court only
combined document with Bill of Costs

48
Q

What is a Bill of Costs

A

Allows plaintiff to obtain some expeses from the defendant
allowed pursuant of alberta rules of court
additional funds calculated using schedule c of alberta rules of court
combined default judgment and bill of costs

49
Q

What is noting in default

A

Gives formal notice to the clerk of the court that defendant did not file a statement of defence or demand notice
use form 14
no signature required

50
Q

What is Ex-parte Application?

A

Apply to the court to render a judgement in favour of the plaintiff
requesting the judge to assess the plaintiff damages and attach a dollar figure to those damages
request for judgement done without notice to defendant

51
Q

Steps in an unliquidated claim

A
  1. prepare swear and file affidavit of service
  2. prepare ex parte application and affidavit
  3. have client in to swear affidavit
  4. file Ex-parte application and affidavit with court
  5. wait and appear at hearing
  6. Have order signed and entered
  7. Prepare writ of enforcement
52
Q

what is Summary Judgment

A
  • option whendefendant files and serves statement of defence if there is no vaild defence.
  • or only issue in dispute is the amount of money the plaintiff should receive.
53
Q

What documents are needed for a summary of Judgment

A
  1. Affidavit of Service
  2. Application for summary judgement
  3. affidavit of plaintiff
  4. affidacit of Defendant
  5. Judgment or order may be granted after hearing.
54
Q

Legal assistant role with summary Judgment

A

Type and format documents
contract clerk of the court for abailable trial dates
send documents for filing
serve appropriate documents on opposing party

Credit & Collections (1 decks)

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