Cross 9e TBB Ch16
Chapter 16
Creditor-Debtor Relations and Bankruptcy
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
true/false questions
1. With a mechanic’s lien, real estate becomes security for a debt.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
2. A writ of execution applies to a debtor’s nonexempt real or personal property wherever located.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. Only a few types of property—a debtor’s wages or bank account, for example—can be garnished.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
4. Liens generally take priority over other claims against the same property.
answer: t PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal
5. If a homeowner defaults, or fails to make the mortgage payments, the lender has the right to foreclose on the mortgaged property.
answer: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
6. The lender does not have to strictly comply with the state statute governing foreclosure—substantial compliance is sufficient.
answer: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
7. A surety can be required to pay an obligation only after the principal debtor defaults and usually only after the creditor has made an attempt to collect from the debtor.
answer: F PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
8. When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor.
answer: T PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
9. A surety is entitled to receive from the debtor the actual amount of the debt paid to the creditor on behalf of the suretyship
Creditor-Debtor Relations and Bankruptcy
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
true/false questions
1. With a mechanic’s lien, real estate becomes security for a debt.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
2. A writ of execution applies to a debtor’s nonexempt real or personal property wherever located.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
3. Only a few types of property—a debtor’s wages or bank account, for example—can be garnished.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
4. Liens generally take priority over other claims against the same property.
answer: t PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Legal
5. If a homeowner defaults, or fails to make the mortgage payments, the lender has the right to foreclose on the mortgaged property.
answer: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
6. The lender does not have to strictly comply with the state statute governing foreclosure—substantial compliance is sufficient.
answer: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
7. A surety can be required to pay an obligation only after the principal debtor defaults and usually only after the creditor has made an attempt to collect from the debtor.
answer: F PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
8. When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor.
answer: T PAGES: Section 3 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
9. A surety is entitled to receive from the debtor the actual amount of the debt paid to the creditor on behalf of the suretyship