Question

18. A pre-judgment remedy that allows a court to seize contested property to insure that it will be available to paya judgment where there is a significant likelihood that the property would be lost or devalued before trial is known as a (a) writ of execution; (b) wnit of possession (c) writ of certainty; (d) writ of attachment. 19. The form securing an interest in personal property that must be recorded with the Secretary of State where the property is located is known as a (a) UCC-1 (b) UCC-2 (c) UCC-3; (d) none of the above-you cannot secure a debt with personal property 20. If a creditor wants to garnish a debtor's wages, the creditor must obtain a(n) (a) writ of attachment (b) summons (c) earnings withholding order (d) wage attachment decree 21. Federal law sets a cap on the homestead exemption that may be claimed by any debtor of (a) $125,000; b) $150,000; (c) $1,500,000; (d) there is no Federal cap on homestead exemptions - that is completely up to the States to set 22. A Chapter 7 Bankruptcy proceeding provides for (a) the reorganization of the debtor, (b) a payment plan that will allow the debtor to pay off all or part of his debts; (e) an opportunity to negotiate with unsecured creditors regarding how much will be paid on debts; (d) complete liquidation and discharge for all unsecured, non-exempt debts

Answer 1

18. Option d.

Under writ of attachment, a court can order the police to seize assets. These are done as part of the pre-judgment i.e. the legal action is pending.

19. Option a,

A UCC-1 form is used to secure the interest in a property. UCC-3 is used to renew the security interest every five years.

20. Option c - Earnings withholding order.

A wage attachment decree is used to deduct taxes or other deductions such as child support. An earnings withholding order requires the employer to garnish employee's wages and send it to the creditor.

21. Option d. Each State has its own limits. For example in California, its $75000 whereas in Georgia it is $21500.

5. Option d.

Under Chapter 7, a trustee is appointed to liquidate all non-exempt assets and pay off creditors. Once the assets are exhausted the debt is discharged.