Suretyship & Creditor's Rights Flashcards
0
Q
What is assignment for the benefit of creditors?
A
It is a transfer of some or all of a debtor’s property to a trustee who then uses the property to pay the creditors. There is no discharge of debts here because the creditors have not entered into any contract to take less than full payment.
1
Q
What is a composition of creditors?
A
An agreement between a debtor and at least two creditors that the creditors will take less than full payment to discharge the debts owed by the debtor to the creditors who participate in the composition agreement.
2
Q
Homestead exemptions does not apply to what?
A
Generally, a home mortgage lien is not subject to a state homestead exemption if it is a purchase money mortgage and neither is an IRS tax lien.
