Creditors Rights

Question 1

How long does the creditor’s right to enforce a j’ment last?

Answer 1

20 years

Question 2

Once 20-year j’ment enforcement period expires, can it be extended?

Answer 2

Yes, by motion to the court that rendered the j’ment.

Question 3

What is the Uniform Enforcement of Foreign Judgments Act?

Answer 3

Means of domesticating sister state j’ments

Question 4

How to enforce sister state judgement under Uniform Enforcement of Foreign J’ment Act.

Answer 4

Creditor needs to:

1. Register the j’ment in office of the clerk of the court where the j’ment is sought to be enforced
2. Notify the defendant of the registration in writing.

Question 5

What’s the basic rule re J’ment Cr’or remedies?

Answer 5

They may use all of a D’or’s property to satisfy his claim except exempt property. Remedies designed to allow the Cr’or to obtain liens on all of the D’or’s assets.

Question 6

Can someone (like a spouse) be held liable on a negotiable instrument if they didn’t sign it?

Answer 6

No, must bear their signature (or auth’d rep).

Question 7

What is the doctrine of necessaries?

Answer 7

Where spouse shares the duty to pay for necessary expenses (like their daughter’s medical bills), they’re equally liable for K’s (or tort liability) .

Question 8

Are spouses responsible for the other spouse’s K or tort liability?

Answer 8

No (whether before or after marriage).

Question 9

Can a lien attach to j’ment debtors’ principal residence held by spouses as tenants by the entirety?

Answer 9

No

Question 10

For accounts held in jt tenancy w/ ROS, can a Cr’or of 1 of the owners, who is a j’ment debtor, reach the D’or’s share of the account?

Answer 10

Yes

Question 11

What’s the o’ship presumption regarding an account owned by a husband and wife?

Answer 11

That they own it equally

Question 12

How should a J’ment Cr’or collect on the D’or’s bank account?

Answer 12

After 21 days after the entry of any judgment order, they should file a SUGGESTION IN GARNISHMENT that requests Clerk’s Office (of ct where j’ment was entered) issue a WRIT OF EXECUTION AND GARNISHMENT on the bank account.

Question 13

What is the VA Homestead exemption? What are the amounts?

Answer 13

Allows all VA residents to claim a homestead exemption until the maximum allowable amount is exhausted.

May be claimed in any property worth up to $5000 ($10k if 65 or older).

Plus $500 for each dependent

Amount is $25k if real or personal property is used as the PRINCIPAL RESIDENCE

Question 14

What is the Poor Debtor’s Exemption?

Answer 14

Every VA resident may claim the following as exempt, IN ADDITION TO HOMESTEAD:

1. Clothing up to $1k
2. Household Furnishings up to $5k
3. Trade tools up to $10k
4. Motor Vehicles up to $6k
5. Heirlooms up to $5k
6. Burial plots up to $5k
7. Sentimental items

Question 15

What is a mechanic’s lien?

Answer 15

Gives security to those who add value to REAL PROPERTY (through labor or supply of materials) valued at $150 OR MORE.

Gen’l K’or must file a memo of lien, along w/ a certification he mailed a copy of the memo to the affected owner, within 90 DAYS OF COMPLETION of the work.

Question 16

What is a LIEN OF MECHANIC FOR REPAIRS?

Answer 16

Mechanic obtains a possessory lien when not paid for making REQUESTED REPAIRS TO PERSONAL PROPERTY.

Mechanic can RETAIN POSSESSION of property until JUST AND RSN CHARGES are paid.

When repairs are to property at the request of a security interest holder, lien can’t exceed $1,000.

Question 17

What is a FRAUDULENT CONVEYANCE?

Answer 17

Allows creditors to obtain liens on

1. Property that the debtor transferred to HINDER, DELAY OR DEFRAUD Cr’ors.
2. GIFTS made by D’or WHILE INSOLVENT.

Question 18

What is Cr’or’s recourse as to FRAUDULENT CONVEYANCE?

Answer 18

If actual intent to delay, hinder or defraud any Cr’or is proved, conveyance can be AVOIDED

UNLESS made to a BFP W/O NOTICE

Question 19

What is a VOLUNTARY CONVEYANCE?

Answer 19

Gifts that RENDER THE D’OR INSOLVENT or that were made WHILE D’OR WAS INSOLVENT

may be AVOIDED by PRESENT CR’ORS

Question 20

Can J’ment Cr’or of 1 spouse void conveyance from both spouses (when tenants by the entirety) to 1 spouse?

Answer 20

No. H & W may convey property held by the entirety to 1 spouse free from liens or claims of creditors, and no Q of fraud is involved.

Question 21

Can J’ment Cr’or have interest/lien in property held by spouses as tenants by the entirety when Cr’or’s claim is against 1 spouse?

Answer 21

No

Question 22

Can a BFP be a Creditor?

Answer 22

Yes, as long as a bona fide loan was outstanding at the time

Question 23

What factors do courts consider when determining whether fraudulent conveyance was done w/ actual intent to hinder, delay, defraud?

Answer 23

1. Tr’or RETAINED AN INTEREST IN OR POSSESSION OF the property
2. Transfer was BETWEEN FAMILY MEMBERS for allegedly antecedent debt

Question 24

Can a D’or transfer property to one of his Cr’or’s for sole purpose of preferring that Cr’or?

Answer 24

Yes

Question 25

How can a Cr’or with a j’ment in one jurisdiction create a j’ment lien on real estate owned by the j’ment D’or in another VA jurisdiction?

Answer 25

By filing an ABSTRACT OF JUDGMENT in the CIRCUIT CT of the jurisdiction where the property is located. This will create a J’MENT LIEN.

Question 26

When property is owned by spouses as Tenants by the Entirety, and 1 spouse is the D’or, can Cr’or reach the property?

Answer 26

No

Question 27

Can J’ment Cr’or reach a JOINT BANK ACCOUNT when only 1 person is the D’or? What if account owners are married?

Answer 27

Yes. O’ship is in proportion to the NET CONTRIBUTIONS by each.

If spouses, account belongs to them EQUALLY.

Question 28

How can a motor vehicle lien be perfected?

Answer 28

By noting the lien on the title to the vehicle by registering the security interest with the DMV

Don’t need to file financing stmt.

Question 29

FRAUDULENT CONVEYANCE: Rule when Cr’or is in complete control of an insolvent corporation.

Answer 29

May NOT COMPEL the corporation to pay his debt before other creditors.