Chapter 15- Creditor's Rights and Bankruptcy

Chapter 15- Creditor's Rights and Bankruptcy - Chapter 15-...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 15- Creditor's Rights and Bankruptcy T RUE -F ALSE  Q UESTIONS         1. A mechanic’s lien involves personal property.         2. An employer can dismiss an employee due to garnishment.         3. A writ of attachment is a court order to seize a debtor’s property  before  the entry of a final judgment in  a creditor’s lawsuit against the debtor.         4. A surety or guarantor is discharged from his or her obligation when the principal debtor pays the debt.         5. A surety cannot use defenses available to the debtor to avoid liability on an obligation to a creditor.         6. A debtor must be insolvent to file a voluntary petition under Chapter 7.         7. With some exceptions, the same principles cover a liquidation petition and a reorganization proceeding.         8. Under Chapter 13, the automatic stay applies only to consumer debt, not business debt.         9. When a business debtor files for Chapter 11 protection, the debtor is not allowed to continue in  business.        
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter 15- Creditor's Rights and Bankruptcy - Chapter 15-...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online