Course Hero Logo

Chapters29,31-33 - Chapter 29: Creditors Rights and...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 2 out of 5 pages.

Chapter 29: Creditors’ Rights and RemediesLien:an encumbrance or claim against property to satisfy a debt or protect a claim for thepayment of a debtMechanics lien:real propertyGarnishment:permits a creditor to collect a debt by seizing property of the debtor that isheld by a third party (usually wages although wages also limited)Suretyship:promise made by third person to be responsible for the debtor’s obligationGuaranty: third person makes guarantee but secondarily liable after suretyDefenses:1.Material change to the contract without the consent of surety or guarantor2.Payment of the obligation even if payment refused3.Any defenses principal debtor has also applyRights:1.Right of subrogation (any rights creditor had against debtor now become rights ofthe surety or guarantor)2.Right of reimbursement3.Right of contributionProtection for debtors:1.Homestead exemption2.Personal property exemptionChapter 31: Bankruptcy LawTypes of bankruptcy:1.Chapter 7: liquidation proceedings (selling all assets)2.Chapter 11: reorganization3.Chapter 12/13: adjustment of debts by persons with regular incomesExceptions to discharge:1.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 5 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
Saffold,Jon
Tags
Business, Debt,

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture