Exam 20: Creditors Rights and Bankruptcy

Fact Pattern 20-1 Mary's home is in a state that has a $30,000 homestead exemption.Mary de-faults on a $60,000 debt that she owes to Nina.Mary's home is sold at auc-tion for $80,000. -Refer to Fact Pattern 20-1.Mary will receive

Anthony believes that he needs to obtain a Chapter 13 discharge in bank-ruptcy.A Chapter 13 case can be initiated by a filing of a voluntary pe-tition by

Denise borrows $90,000 from Clear Lake Credit Union to buy a home.Denise loses her job and fails to make payments on the mortgage,but assures Clear Lake Credit that she will soon secure a new job.The lender agrees to postpone the payments.This is

Roland files for Chapter 7 bankruptcy.After all his assets have been sold and the proceeds distributed among his creditors,Roland's remaining debts

Daphne defaults on a debt to Country Loan Corporation (CLC).As a creditor,CLC can place liens on all of Daphne's property except

A petition for a discharge in bankruptcy under Chapter 13 may be filed by

A court awards a judgment to Alice,who is the creditor,against Ada,who is the debtor.After the judgment,Alice requests a court order to seize Ada's property to ensure that the judgment will be collectible.This is

Thirty-one days before filing a petition in bankruptcy,Dee transfers prop-erty and makes payments that favor one creditor over another.These are

Creditors can agree with a debtor to discharge the debtor's debts on payment of a sum less than that owed.

Before filing for bankruptcy,a consumer-debtor must receive credit counseling.

A guarantor is secondarily liable on an obliga-tion.

Consumer Credit,Inc.(CCI),lends $1,000 to Joe.Kay acts as Joe's surety.If Kay pays the loan,she gets

A fixed-rate mortgage has a rate of interest that changes periodically.

Gerald files a bankruptcy petition.The resulting automatic stay will apply to Gerald's

Norma Jean files for Chapter 7 bankruptcy.She turns her assets over to Addie,who sells the assets and then distributes the proceeds to Norma Jean's creditors.Addie is a

Lionel files a voluntary petition for bankruptcy under Chapter 7.The court will likely deny a discharge of Lionel's debts if he

An order for relief in a bankruptcy proceeding amounts to a discharge of the debts of the party petitioning for bankruptcy protection.

An artisan's lien is a security device created at statutory law through which a creditor can recover payment for labor and materials used to increase the value of real property.

An artisan's lien is effective only if a creditor has possession of the property.

William is a surety for Jeannie's loan from Richard.Richard knows of William's existence.When the loan comes due,Jeannie tries to pay Richard,but Richard rejects the payment.William is