PCS Legal Remedies & Court Proceedings 2

Question 1

Under the Consumer Credit Protection Act (CCPA), the maximum amount of disposable earnings that may be garnished per week is generally:

Accepted Answer

25% of disposable earnings or the amount by which earnings exceed 30 times the federal minimum wage, whichever is less

Answer

The CCPA limits garnishment to the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage.

Question 2

A bank levy in debt collection allows a judgment creditor to:

Accepted Answer

Seize funds directly from the debtor's bank account

Answer

A bank levy (also called a bank attachment) allows a judgment creditor to have funds frozen and seized directly from the debtor's bank accounts to satisfy the judgment.

Question 3

A judgment lien gives a creditor the right to:

Accepted Answer

Claim an interest in the debtor's real property that must be paid upon sale or refinance

Answer

A judgment lien attaches to real property owned by the debtor, ensuring the creditor is paid from the proceeds when the property is sold or refinanced.

Question 4

How long are civil judgments typically valid before they may need to be renewed to remain enforceable?

Accepted Answer

5 to 10 years, depending on state law

Answer

Judgment validity periods vary by state, commonly ranging from 5 to 10 years, after which the creditor may need to renew the judgment to continue enforcement efforts.

Question 5

A judgment debtor examination (debtor's exam) is a court proceeding in which:

Accepted Answer

The creditor questions the debtor under oath about their assets and finances to aid in collection

Answer

A judgment debtor exam is a post-judgment discovery tool where the creditor questions the debtor under oath about their income, assets, and financial situation to identify collectible assets.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS Legal Remedies & Court Proceedings 2