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.If Nina recovers less than she is owed,she can realize the difference from

A mechanic's lien can be enforced to obtain payment for work that adds value to real property.

A surety can assert the debtor's bankruptcy as a defense.

Ronald's debt to Greg is past due.Ronald obtains a judgment against Greg to collect the debt,but Greg will not pay.Ronald requests a writ of execution.The property that is seized under the writ of execution must be

Checkerboard Pizza,Inc.(CPI),files for bankruptcy under Chapter 11.CPI's Chapter 11 plan must contain

A trustee has the power to avoid a sale of the debtor's property.

Michael contracts with Jill to fix the brakes on her Honda Civic.Jill leaves her car with Michael,but refuses to pay when the work is done.Michael refuses to return the car until she pays.Michael's lien on Jill's car will end

A discharge will be denied to a debtor who received a discharge within eight years of filing the current petition.

Once a writ of execution has been issued,the debtor cannot pay the judgment and redeem the property until aftera sale has taken place.

A petition for a discharge in bankruptcy under Chapter 11 may be filed byA petition for a discharge in bankruptcy under Chapter 11 may be filed by

A surety can never assert fraud as a defense.

Ed is a debtor.Financial Loans,Inc.,and the government are Ed's credi-tors.For these parties,a bankruptcy proceeding under Chapter 13 could be initiated by the filing of a petition byEd is a debtor.Financial Loans,Inc.,and the government are Ed's credi-tors.For these parties,a bankruptcy proceeding under Chapter 13 could be initiated by the filing of a petition by