Bankruptcy and Collections MIDTERM

Question 1

Do you imagine yourself doing this full time?

Answer 1

No <3

Question 2

Why are bankruptcy and collections important?

Answer 2

Protects from harass-y credit predators, What debt collectors can, should, and must say

Question 3

Unsecure debt

Answer 3

debt that isn’t tied to any assets (credit cards)

Question 4

Secured debts

Answer 4

Debt that is tied to asset(s) (Bob B’s restaurant equipment)

Question 5

Revolving Debt

Answer 5

A debt without a fixed payment plan

Question 6

Installment Debt

Answer 6

A debt with a specific payment plan

Question 7

T/F Debts cannot be multiple types simultaneously

Answer 7

False

Question 8

default (on)

Answer 8

fail to do something (pay a debt)

Question 9

3 (broad) categories of debts

Answer 9

Statutory debt, contract debt (mortgage), tort-based debt (child support)

Question 10

What’s the most common type of debt?

Answer 10

contract debt

Question 11

og creditor will ASSIGN their debt to

Answer 11

A collection agency or a debt buyer

Question 12

FDCPA

Answer 12

Fair Debt Collections Protection Act (1978)

Question 12

FDCPA

Answer 12

Fair debt collection practices Act

Question 13

A lien is

Answer 13

the right to an asset until a debt is paid

Question 14

Georgia is a contract state, you have to sign a contract to be liable for debt(?)

Answer 14

not liable for your spouse’s debts

Question 15

a personal guarantor is

Answer 15

An individuals “trust me bro” person (mom on my lease)

Question 16

Zombie debts are

Answer 16

accounts that died and ‘came back to life’

Question 17

How long does a defendant have to answer a claim?

Answer 17

30 days from date served

Question 18

Give an example of this professor being purposely difficult, despite his claims to attempt otherwise

Answer 18

this professor thinks that 6,000 is not less than 15,000, but only less than 10,000

Question 19

Who maintains real estate records in GA?

Answer 19

The superior courts

Question 20

How can creditors enforce judgements against defandants?

Answer 20

wage garnishment, levy bank funds, recording a lien against debtors property

Question 21

How long can one period of garnishing wages last?

Answer 21

Wage garnishments now last for up to 1095 days (3 years). If not fufilled in that time, another wage garnishments is filed

Question 22

A creditor is

Answer 22

someone with a legal obligation to be fulfilled a debt or obligation

Question 23

A debtor is

Answer 23

a person or company who owes a debt that is or will become due

Question 24

To default is to

Answer 24

fail to do something required by law, or fail to pay a debt

Question 25

A security interest is

Answer 25

an interest in property of a debtor that secures payment to the creditor

Question 26

a secured creditor is

Answer 26

someone with a legal interest in collateral

Question 27

an unsecured creditor is

Answer 27

someone having no collateral or security agreement to assure payment of its claim

Question 28

Where is debtor-creditor law found in O.C.G.A.?

Answer 28

O.C.G.A.§§ 18-1-1 to 18-5-5

Question 29

Title 11 of the U.S. Code covers what?

Answer 29

Bankruptcy law, defining the rights and responsibilities of debtors and creditors

Question 30

At what point do bankruptcy laws come into effect, and GA debtor-creditor laws become inapplicable?

Answer 30

When a bankruptcy petition has been filed

Question 31

Alimony is what type of debt?

Answer 31

tort-based debt

Question 32

Student loans are what type of debt?

Answer 32

contract debt

Question 33

Income tax is what type of debt?

Answer 33

Statuatory debt

Question 34

A promissory note is

Answer 34

a document between a borrower and a lender, the instrument through which debts are created

Question 35

Installments plan vs balloon note

Answer 35

Installments are installments, and balloon notes are combos of installments and single payments by a date certain

Question 36

Judgment is

Answer 36

judicial determiniation of liability

Question 37

Credit card debts can be moved (assigned or sold) after defaulting for how long?

Answer 37

60 days

Question 38

How long after defaulting on a bad debt can a lawsuit be filed and serviced?

Answer 38

180 days

Question 39

How can judgments be fulfilled?

Answer 39

With settlements or Garnishment, Bank Levy

Question 40

What's a Writ of Fi Fa?

Answer 40

An order from the magistrate court to record a lien on the judgment debtor's property

Question 41

To charge off debt means what?

Answer 41

For a creditor who has a debtor that isn't paying to send the debt to a law firm or a collection agency because they can't collect it

Question 42

What must a debt collector tell a debtor in a debt validation notice?

Answer 42

- statement that the notice is from a debt collector - Name and mailing info - name of the creditor - itemization of debt and itemization date - current amount of debt as of when the validation info is provided

Question 43

How long does a debtor have to dispute a debt collector's notice?

Answer 43

30 days

Question 44

T/F There is a jury in magistrate court

Answer 44

False

Question 45

The statute of limitations on an open account is how long?

Answer 45

4 years

Question 46

The statute of limitations on written contracts is how long after contract breach?

Answer 46

6 years

Question 47

A collection lawsuit is generally filed in what county?

Answer 47

The debtor's county

Question 48

If defendant fails to file an answer within 30 days of being served, they are in what?

Answer 48

Default