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25 Cards in this Set
- Front
- Back
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fraudulent conveyance of property
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-intent to defraud a creditor
-debtor keeps possession of property -debtor secretly or transfers property -debtor retains equitable interest in property |
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garnishment procedures
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rights of creditor
-creditor can garnish debtor's wages to pay off debt -social security benefits are exempt & protected from creditors |
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Federal Fair Debt Collection Practices Act
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-to prevent debt collectors from using unfair or abusive collection methods
-you can use a civil lawsuit against the debt collector who violates this Act REMEDIES: (of debtor) 1) sue for damages 2) sue for up to $1000 for violation of Act if damages are not proven 3) you cannot reduce or abolish the debt |
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liens
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creditor's right
-to secure payment for services or materials -require notice to be given to debtor before the creditor can sell the property to satisfy the debt |
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mechanic's lien
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secure payment for repair's
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artisan's lien
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secure payment services or materials
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writ of attachment
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-prejudgement remedy
-creditor's right to take personal property of debtor prior to getting a judgment in a lawsuit |
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use of garnishment
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-allows creditor to obtain property of the debtor that is held by a 3rd party
-creditor's right |
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how do you release a non-compensated surety (debtor) from liability to the creditor?
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-creditor fails to notify the surety of a partial surrender of the principal debtor's collateral - releases surety
-when creditor modifies the contract, increasing the surety's risk -bankruptcy (personal defense) not a defense for surety -creditor is incompetent or dies (personal defense) does not release surety -debt is voidable at the option of the creditor |
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surety relationship
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3 party relationship
-surety agrees to answer for the debt of another |
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surety's agreement
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must be in writing
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guarantors have agreed to pay the debt of another to loan shark, if he defaults, the loan shark will be able to recover from the guarantors unless
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the loan shark has not attempted to enforce the debt against the guy that owes him
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rights of a surety
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-subrogation (same rights as creditor)
-exoneration (requiring debtor to pay when able) -reimbursement (from debtor) |
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subrogation
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gives the surety the same rights the creditor has
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surety defenses to limit liability against creditor
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incapacity of surety
-surety can't use personal defenses of the debtor (bankruptcy, incapacity, death) |
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how do you totally release of compensated surety?
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debtor's tender of performance
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surety can avoid liability if she can prove that
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the Bank was aware of fraudulent representations
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what would release a surety's obligation to pay the Bank on behalf of the debtor?
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if his wife pays the bank in full
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co-surety's right
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right of contribution
entitled to reimbursement from debtor -when one co-surety pays more than his proportionate share of the total liability -jointly and severally liable to the creditor |
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indemnity contract
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2 parties where the 1st party agrees to indemnify and reimburse the 2nd party for debts or losses
-surety has right to demand reimbursement from the debtor for amounts paid to the creditor |
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surety
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agrees to pay the creditor if the debtor defaults
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third party beneficiary
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2 parties make a K intended to benefit a 3rd party
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co surety -
liability? rights? |
2 or more sureties agree to be sureties for the same obligation to the same creditor
-liable for proportionate share -can seek contribution from the other sureties |
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subrogation
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"steps into the shoes of"
when surety pays the creditor, the surety has the same rights against the debtor that the creditor had |
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exoneration
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when debtor is able to pay, the surety can get the debtor to pay before the surety pays
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