Themis Essay 831

Question 1

Creditors can upset fraudulent or voluntary transfers made by their debtor, restoring title to the transferred property to the debtor, which

Answer 1

allows the creditor to levy the property and sell it.

Question 2

Creditors are divided into two categories:

Answer 2

(i) existing creditors, who have liquidated their claims against the debtor by agreement (e.g., article 9 security interests or mortgages) or judgment at the time of the challenged transfer; and
(ii) future creditors, who obtain or reduce their claims to judgment after the challenged transfer.

Question 3

Existing creditors may challenge either

Answer 3

fraudulent or voluntary conveyances made for less than fair market value.

Question 4

Future creditors may only challenge

Answer 4

transfers made with the intent to defraud.

Question 5

As a general rule, a gift, conveyance, assignment, or transfer of real or personal property that is intended to defraud creditors may be

Answer 5

set aside.

Question 6

A conveyance, assignment, or transfer of real or personal property made for less than fair market value may be

Answer 6

set aside by existing creditors.

Question 7

A creditor may bring an action to set aside a conveyance even before

Answer 7

obtaining a judgment lien.

Question 8

The filing of an action by a creditor creates a

Answer 8

lien against the transferred property.

Question 9

Existing judgment creditors may file suit to

Answer 9

set aside voluntary transfers as well as fraudulent conveyances.

Question 10

The transferee (grantee) is a necessary party to be joined in actions to

Answer 10

set aside a conveyance or place a lien on transferred property.

Question 11

A lis pendens is a public act that allows

Answer 11

a lien of attachment to be effective against a bona fide purchaser.

Question 12

A lien attaches on property of a third-party when the third-party is named as a co-defendant and

Answer 12

served with a copy of the attachment.

Question 13

Normally, a preferential transfer to a creditor that satisfies an existing debt is

Answer 13

not fraudulent.

Question 14

When the debtor controls the creditor entity, the debtor cannot

Answer 14

convey property to satisfy its own debt before the debts of other creditors.

Question 15

The writ of fieri facias commands the sheriff to

Answer 15

find the debtor’s property, seize it, and sell it to satisfy the judgment.

Question 16

The writ of fieri facias is used to execute on

Answer 16

all forms of personal property that can be described as chattel and that are not exempt.

Question 17

A lien attaches upon

Answer 17

levy.

Question 18

A proper levy occurs when the property is

Answer 18

subject to the “power and view” of the sheriff.

Question 19

If any person has a claim, legal or equitable, to damages for breach of any contract, she may

Answer 19

sue for an attachment of the debtor’s property.

Question 20

It is sufficient grounds for an action for pre-trial levy, seizure, or attachment if the debtor:

Answer 20

(i) is a foreign corporation;
(ii) is removing or about to change his domicile;
(iii) is removing or intending to remove his property out of Virginia;
(iv) is converting or about to convert his property into money, securities, or evidences of debt with the intent of hindering his creditors;
(v) has assigned or disposed of or is about to assign or dispose of his estate; or
(vi) has absconded or is about to abscond with his property.

Question 21

Before seeking attachment of the property, the plaintiff must

Answer 21

post a bond, after which the lien attaches to the defendant’s tangible personal property in his possession when the sheriff makes a proper levy.

Question 22

With every attachment against specific personal property, the sheriff must

Answer 22

attach the specific property claimed in the petition, and as much as necessary of the defendant’s real and personal property as necessary to cover the damages for the detention of the specific property sued for and the costs of the attachment.