Exam 28: Creditors Rights and Remedies

Frank's farm is to be sold at a foreclosure sale. For Frank to keep the farm by paying the full amount of the debt, plus any interest and costs that have accrued, is

A creditor with an artisan's lien on property can sell the property to sat?isfy the debt.

Ezra's mortgage debt to Foxy is past due. Foxy brings a legal action against Ezra to collect the debt. Foxy asks the court to order the sale of the mortgaged property and the payment of a portion of the proceeds to Foxy. Before the sale, Ezra seeks to keep the property by paying the full amount of the debt. This is

Opie's debt to Pyle is past due. Pyle obtains a judgment against Opie to collect the debt, but Opie refuses to pay. Pyle asks the court to order the seizure and sale of Opie's property. This is a request for

Fact Pattern 28-1A Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors. -Refer to Fact Pattern 28-1A. If Edie signs the application but fails to con?di?tion her signature on Finest's agreement to pursue its legal remedies against Dina before looking to her, then Edie is

A guarantor is secondarily liable on an obliga?tion.

Flip's debt to George is past due. George brings a legal action against Flip to collect the debt. George asks the court to order Home Bank, in which Flip has an account, to pay a portion of the funds to George. This is a request for

A guarantor is released from his or her obligation if a debtor cannot pay it.

A contract of suretyship must be in writing to be enforceable.

Loni delivers her Mazda to be repaired at Nile's Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is

A pipe in Gert's house springs a leak. Gert contracts with Holly's Plumbing & Construction Company to repair the pipe and fix the dam?age to Gert's house. Gert pays 10 percent of the price in advance. Holly's does the work, but Gert refuses to pay the rest of the price. What can Holly's do, and how is it done?

Pruit performs a contract with Quint to reshingle the roof on Quint's house, but Quint does not pay. Pruit notifies Quint that Pruit will foreclose on the house and sell it to satisfy the debt. This is

Fact Pattern 28-3B 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 28-3B. Mary will receive

A court may not order an employer, as a result of a garnishment pro?ceed?ing, to turn over a debtor-employee's property to pay a debt.

Wanda owes Xtra Credit Company $5,000 but refuses to pay. Xtra Credit ob?tains a garnishment order and serves it on Wanda's employer, Young Nursery & Garden, Inc. If Young complies with the order and Wanda stays on the job, is one order enough to garnish all of Wanda's wages for each pay period until the debt is paid?

Jen has a claim against Kevin's property that must be satisfied before the property is available to satisfy the claims of other creditors. This is

A writ of attachment is a court order to seize a debtor's property before the entry of a final judgment in a creditor's lawsuit against the debtor.

First State Bank holds a mortgage on Gigi's property. Gigi defaults on the debt. The bank forecloses. If the proceeds of the foreclosure sale are insuf?ficient to pay the costs of the sale and the debt, the bank can

A release by the creditor of the principal debtor, without the consent of the surety, will, without more, release the surety.

Almost all types of property can be garnished.