FREE VA Bar Creditors Rights Questions and Answers
What is the statute of limitations for bringing an action to recover a debt under a written contract in Virginia?
In Virginia, the statute of limitations for bringing an action to recover a debt under a written contract is 5 years. This period begins to run from the date the cause of action accrues, typically from the date of the breach or default.
Under Virginia law, which of the following is a requirement for a creditor to enforce a judgment lien on real property?
In Virginia, to enforce a judgment lien on real property, the creditor must record the judgment in the local land records office where the property is located. Recording the judgment creates a lien against the property, which secures the creditor’s claim and allows them to pursue collection actions such as foreclosure if necessary.
Under Virginia law, what is a “homestead exemption” and how does it affect creditors?
The homestead exemption in Virginia allows debtors to exempt a certain amount of equity in their primary residence from creditors’ claims. This means that if a debtor files for bankruptcy or has a judgment against them, they can protect a portion of their home’s value from being used to satisfy creditors’ claims, up to the statutory limit.
What is the purpose of a debtor’s examination in Virginia collections law?
A debtor’s examination is a legal proceeding where the debtor is required to provide information about their financial status, including assets and income. The purpose of this examination is to assess the debtor’s ability to repay the debt and to identify available assets that can be used to satisfy the judgment.
Under Virginia law, which of the following actions can a creditor take to collect a debt if the debtor has a bank account?
In Virginia, a creditor can seek to collect a debt by filing a motion for a writ of garnishment. This legal procedure allows the creditor to attach the debtor’s bank account or wages to satisfy the judgment. Garnishment is a common method for collecting debts when the debtor has liquid assets.