Bankruptcy Laws WGU D216 – Questions With
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Terms in this set (63)
What is the legal definition of a A creditor is the one who is owed money.
creditor?
How does a secured creditor differ A secured creditor has a loan backed by collateral
from an unsecured creditor? (e.g., house, car), while an unsecured creditor does
not (e.g., credit cards).
What is a lien in the context of debt? A lien is a claim on property in order to satisfy a debt.
A _____ is a lien placed on real property Mechanic's Lien
for work done on it.
What is an Artisan's Lien? An Artisan's Lien is a claim on personal property for
work done on that property.
Under an Artisan's Lien, what can a The lienholder can refuse to give the property back
lienholder do if the property owner to the owner until they pay.
doesn't pay?
When is an Artisan's Lien typically The lien is released when the lienholder voluntarily
released? surrenders the property.
What is a Judicial Lien? A lien obtained when a creditor brings legal action
against a debtor and gets a court judgment to collect
a debt.
What pre-judgment remedy allows a A Writ of Attachment.
court to take custody of a debtor's
property to prevent its disposal?
, What court order, issued after a A Writ of Execution.
judgment, authorizes the seizure and
sale of a debtor's nonexempt
property?
What is garnishment in the context of It is a court order permitting a creditor to collect a
debt collection? debt by seizing the debtor's property that is being
held by a third party.
What is the most typical way a creditor By taking a certain amount of money from a debtor's
uses garnishment to collect a debt? paychecks.
A third person who promises to pay a co-signer
debt owed by another is known as a
_____.
What is the key difference in liability A Surety is primarily liable and can be pursued even
between a Surety and a Guarantor? if the debtor hasn't defaulted, while a Guarantor is
secondarily liable and can only be pursued after the
debtor defaults.
What is a formal requirement for all They must be in writing.
suretyship and guaranty agreements?
What happens to a surety's obligation The surety is released from their obligation due to a
if the original contract is modified Material Modification.
without their consent?
How can a creditor's action of It releases the surety from their obligation.
surrendering collateral to the debtor
affect a surety?
What is the Right of Subrogation for a Any rights that the creditor has against the debtor
surety? become the rights of the surety against the debtor.
What is the Right of Reimbursement A surety is entitled to be reimbursed from the Debtor
for a surety? for any payments made.
Expert Answers
Save
Terms in this set (63)
What is the legal definition of a A creditor is the one who is owed money.
creditor?
How does a secured creditor differ A secured creditor has a loan backed by collateral
from an unsecured creditor? (e.g., house, car), while an unsecured creditor does
not (e.g., credit cards).
What is a lien in the context of debt? A lien is a claim on property in order to satisfy a debt.
A _____ is a lien placed on real property Mechanic's Lien
for work done on it.
What is an Artisan's Lien? An Artisan's Lien is a claim on personal property for
work done on that property.
Under an Artisan's Lien, what can a The lienholder can refuse to give the property back
lienholder do if the property owner to the owner until they pay.
doesn't pay?
When is an Artisan's Lien typically The lien is released when the lienholder voluntarily
released? surrenders the property.
What is a Judicial Lien? A lien obtained when a creditor brings legal action
against a debtor and gets a court judgment to collect
a debt.
What pre-judgment remedy allows a A Writ of Attachment.
court to take custody of a debtor's
property to prevent its disposal?
, What court order, issued after a A Writ of Execution.
judgment, authorizes the seizure and
sale of a debtor's nonexempt
property?
What is garnishment in the context of It is a court order permitting a creditor to collect a
debt collection? debt by seizing the debtor's property that is being
held by a third party.
What is the most typical way a creditor By taking a certain amount of money from a debtor's
uses garnishment to collect a debt? paychecks.
A third person who promises to pay a co-signer
debt owed by another is known as a
_____.
What is the key difference in liability A Surety is primarily liable and can be pursued even
between a Surety and a Guarantor? if the debtor hasn't defaulted, while a Guarantor is
secondarily liable and can only be pursued after the
debtor defaults.
What is a formal requirement for all They must be in writing.
suretyship and guaranty agreements?
What happens to a surety's obligation The surety is released from their obligation due to a
if the original contract is modified Material Modification.
without their consent?
How can a creditor's action of It releases the surety from their obligation.
surrendering collateral to the debtor
affect a surety?
What is the Right of Subrogation for a Any rights that the creditor has against the debtor
surety? become the rights of the surety against the debtor.
What is the Right of Reimbursement A surety is entitled to be reimbursed from the Debtor
for a surety? for any payments made.
