PCS Legal Remedies & Court Proceedings 3

Question 1

The key difference between a secured creditor and an unsecured creditor in legal proceedings is:

Accepted Answer

Secured creditors have a specific asset (collateral) backing the debt; unsecured creditors do not

Answer

Secured creditors must sue in federal court; unsecured creditors use state court

Answer

Secured creditors cannot obtain a judgment; unsecured creditors can

Answer

Secured creditors are regulated by the FDCPA; unsecured creditors are exempt

Question 2

What is 'service of process' in the context of debt collection litigation?

Accepted Answer

Formally delivering legal documents (summons and complaint) to the defendant to establish court jurisdiction

Answer

Delivering a debt validation notice to the consumer

Answer

Submitting payment terms to the court for approval

Answer

Notifying the credit bureaus of a pending lawsuit

Question 3

A consent judgment in debt collection is best described as:

Accepted Answer

An agreed-upon judgment where both parties settle the terms and present them to the court for approval

Answer

A judgment entered when the debtor ignores the lawsuit

Answer

A judgment issued by the CFPB against a collector

Answer

A court order requiring the debtor to attend credit counseling

Question 4

When a collector wants to sue a debtor in a state different from where the debtor resides, the collector must generally:

Accepted Answer

Sue in the judicial district where the debtor signed the contract or resides, as required by the FDCPA

Answer

File the suit in federal district court only

Answer

Obtain permission from the state attorney general

Answer

First record an abstract of judgment in the debtor's home state

Question 5

Post-judgment interest in a debt collection case refers to:

Accepted Answer

Interest that accrues on the judgment amount from the date of entry until the judgment is satisfied

Answer

Interest that accrues on the original debt before a lawsuit is filed

Answer

A penalty charged by the court for filing a frivolous lawsuit

Answer

Interest paid to the debtor if the collector loses the case

Question 6

In most states, a debtor's primary residence (homestead) may be protected from forced sale to satisfy a judgment by:

Accepted Answer

State homestead exemption laws

Answer

The Fair Housing Act

Answer

The FDCPA venue provision

Answer

The Servicemembers Civil Relief Act

Question 7

Which of the following best describes a 'replevin' action in debt collection?

Accepted Answer

A legal action to recover specific personal property (collateral) from a debtor who has defaulted

Answer

A lawsuit to recover money owed on an unsecured credit card

Answer

A motion to vacate a default judgment

Answer

A wage garnishment proceeding in small claims court