COB 218 Final Test Questions with Correct Answers

COB 218 Final Test Questions with Correct Answers beatrix defaults on a debt to CLC. as a creditor, CLC can place lines on all of Beatrix's property, - Answer-except motor vehicles used to commute to workd cal owes devin 100$ on their roof repair contract, but refuses to pay. to collect, Devin files a mechanic's lien. under the mechanic lien, security for the debt is represented by - Answer-Cal's real estate michael contracts with jill to fix her car brakes. jill will not pay after the job is done. - Answer-if michael imposes a lien on the car, it will end when michael voluntarily gives up the car sasha's debt to Tully is past due. Tully brings legal action against sasha to collect the debt. Tully asks court to order seizure of sashas property to ensure favorable judgement in court - Answer-this is a request for a writ of attachment a court awards judgement to Loan agency, who is the creditor against Marge. the creditor requests a court order to seize marge's property after the judgemnts to ensure payment - Answer-this is a writ of execution rons debt to sofia is past due. ron obtains a judgment against sofie to collect the debt that sofia will not pay. ron requests a writ of execution - Answer-the property seized under the writ of execution must be located within the courts geographical jurisdiction Nells debt to olsen is past due. olsen obtains an order of garnishment to require nells employer to pay a part of nells paycheck to olsen - Answer-the law limits the amount that can be taken from nell's take-home pay george borrows funds from the union to buy real property. george signs a written instrument that gives the union an interest in the property as security for the debts payment - Answer-this is a mortgage bank provides shirley with a mortgage to buy a home. the rate of interest is fixed for 3 years then adjusted annually - Answer-this is an adjustable-rate mortgage erin and dooley, married, borrow money from Bank to buy home. when they divorce, they are unable to make payments on the mortgage. the market value of the home has declined to less the ba;ance of the loan. bank agrees to a sale of the property for this amount - Answer-this is a short sale vito borrows money form bank to buy a home. if he fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan - Answer-this is a foreclosure gena borrows money from bank to buy a home, which secures the mortgage. in the 7th years of the loan, gena stops making payments. after the bank repossesses the house but before it is sold, gena may bur it by paying - Answer-the full amount of the debt, plus any interests and costs denise borrows money from the credit union to buy a home. denise loses her job and fails to make a payment, but promises the union that she will get another job. the union agrees to postpone the payments - Answer-this is a forebearence trucking LLC buys a white van from Motors inc, on credit under a guarantee signed by herbie, the Trucking president, mkaing him personally liable if the company does not pay - Answer-herbie is a guarantor dina asks eddie to co-sign a credit application so that she can borrow money. if, after the loan agreement is signed, dina agrees to a higher interest rate wihtout telling eddie, - Answer-eddie is discharged form the agreement jordan is a surety for kelly's loan from lenders credit. when the loan comes due, kelly tries to pay, but they reject her payment. - Answer-jordan is released from any obligations on the debt nancy joins with other creditors to force odette into bankruptcy. one goal of bankruptcy law with respect to creditors, is to - Answer-ensure equitable treatment of creditors who are competing for debtors assets jim wishes to appeal a decision of a bankruptcy in a court - Answer-jim may appeal to a federal district court charise files a petition in bankruptcy in a liquidation proceeding. if the court administers the means test and conlcudes that charise is abusing the bankruptcy process by filing for a liquidation, most likely - Answer-charise will be forced to file for relif throuhg an individual repayment plan