VA Bar Creditors Rights

Question 1

Under Virginia law, which of the following is a requirement for a creditor to enforce a judgment lien on real property?

Accepted Answer

The creditor must record the judgment in the local land records office.

Answer

The creditor must file a complaint for foreclosure.

Answer

The creditor must obtain a new court order for each property.

Answer

The creditor must notify all other creditors of the lien.

Question 2

What is the statute of limitations for bringing an action to recover a debt under a written contract in Virginia?

Accepted Answer

5 years

Answer

3 years

Answer

10 years

Answer

15 years

Question 3

Under Virginia law, which of the following actions can a creditor take to collect a debt if the debtor has a bank account?

Accepted Answer

File a motion for a writ of garnishment.

Answer

Seek an order of arrest for the debtor.

Answer

Request a lien against the debtor’s personal property.

Answer

File a lawsuit to seize the debtor’s real estate.

Question 4

What is the purpose of a debtor’s examination in Virginia collections law?

Accepted Answer

To assess the debtor’s ability to repay the debt and disclose assets.

Answer

To determine the value of the debtor’s real estate.

Answer

To negotiate a new payment plan for the debt.

Answer

To obtain a court order for the sale of the debtor’s property.

Question 5

Under Virginia law, what is a “homestead exemption” and how does it affect creditors?

Accepted Answer

It allows debtors to exempt a portion of their home equity from creditors’ claims.

Answer

It permits debtors to transfer property to a trust to avoid creditors.

Answer

It provides a tax deduction for homeowners with outstanding debts.

Answer

It requires creditors to accept lower payments if the debtor’s home is at risk.