PCS Legal Remedies & Court Proceedings

Question 1

When a debt collector files a lawsuit to collect a debt and the debtor does not respond within the required timeframe, the court may issue a:

Accepted Answer

Default judgment

Answer

Consent decree

Answer

Writ of mandamus

Answer

Declaratory judgment

Question 2

The statute of limitations on a debt refers to:

Accepted Answer

The period during which a creditor can legally sue to collect a debt

Answer

The time a debt remains on a credit report

Answer

The maximum interest rate allowed on a debt

Answer

The time a collector has to validate a debt

Question 3

Which document formally notifies a debtor that a lawsuit has been filed against them and requires them to appear or respond?

Accepted Answer

Summons and complaint

Answer

Writ of execution

Answer

Judgment lien

Answer

Writ of garnishment

Question 4

A writ of execution in debt collection proceedings is used to:

Accepted Answer

Authorize law enforcement to seize debtor assets to satisfy a judgment

Answer

Notify a debtor of a pending lawsuit

Answer

Compel a debtor to appear in court

Answer

Place a lien on real property

Question 5

Small claims court is typically used in debt collection for cases involving:

Accepted Answer

Smaller dollar amounts, usually under state-set thresholds

Answer

Debts above $50,000

Answer

Commercial bankruptcies

Answer

Federal tax debts

Question 6

Filing a collection lawsuit after the statute of limitations has expired is a violation of:

Accepted Answer

The Fair Debt Collection Practices Act (FDCPA)

Answer

The Uniform Commercial Code

Answer

The Truth in Lending Act (TILA)

Answer

The Equal Credit Opportunity Act (ECOA)

Question 7

Before a judgment creditor can garnish wages or levy a bank account, the creditor must first:

Accepted Answer

Obtain a court judgment against the debtor

Answer

Send a 30-day validation notice

Answer

File a proof of claim with the bankruptcy court

Answer

Notify the credit bureaus