Quiz on Negotiable Instruments, Credit and Bankruptcy
A balloon notes has one large payment up front then a series of smaller payments over time
False
A debtor filing for Chapter 7 bankruptcy must provide a list of all immediate family members because persons such as spouses may be liable for the bankrupt person's debts
False
A mechanic's lien applies only to "mechanical" work, such as car repairs or plumbing work on a house
False
A mechanic's lien is also called an artisan's lien
False
A negotiable instrument is a promise by one party to pay an undefined sum of money to another party. There are two parties: the maker and the payee. While the amount to be paid may vary, the date of payment must be set at a specific time in the future
False
A note involves two parties, the maker and the payee. Payment must be on demand
False
According to the Statues of Fraud, mortgages may be either oral or in writing
False
An open account is the least common form of business credit account
False
A cashier's check is a form of check in which the bank is both the drawer and the drawee
True
A check is a draft drawn on a bank and payable on demand
True
A garnishment is when a creditor gets the right to attach a certain percentage of a debtor's wages
True
A person who files bankruptcy may not file again for another eight years
True
A secured creditor is one is able to take a non-paying customer's property to satisfy the customer's debt
True
Even though a person is declared bankrupt, he or she will have to payback student loans; they are usually not eliminated
True
A mortgage will typically contain
a description of the property and the amount of debt involved
Alimony and child support payments, back taxes and most student loans are all examples of
debt that is not extinguished by bankruptcy
Chapter 13 bankruptcy proceedings are used mainly by businesses
false
A mortage
is a debt obligation (lien) attached to real property and gives the mortgagee the right to sell property in case of default
A (n)______ has the same contract responsibilities as an assignee under a nonnegotiable instrument
none of the other choices are correct
A (n)______ is a court-ordered seizure of goods from the customer to prevent the customer from disposing of it during the lawsuit
none of the other choices are correct
A financial institution that receives a promissory note has the right to:
sell the note to another party
A ______ is issued by the clerk of the court and directs the sheriff to seize and sell any of the debtor's nonexempt real or personal property within the court's jurisdiction.
writ of execution