20. Consumer Credit, Inc. (CCI), lends $1,000 to Joe. Kay acts as Joes surety. If Kay pays the loan, she gets

A. None of the choices

B. Any right that CCI had against Joe and a right to be reimbursed by Joe

C. Any right that CCI had against Joe, but not a right to be reimbursed by Joe.

D. A right to be reimbursed by Joe, but not any right that CCI had against Joe.

21. Daphne defaults on a debt to Country Loan Corporation (CLC). As a creditor, CLC can place liens on all of Daphnes property except

A. Stock in various corporations

B. Motor vehicles used to commute to work

C. Vacant commercial property

D. Items that the debtor selects

22. Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is

A. A right of redemption

B. A workout agreement

C. A forbearance

D. A short sale

23. Dorothy files a petition for bankruptcy under Chapter 13. If she is granted a discharge, debts that will most likely be discharged include

A. Credit-card debt incurred more than one year before filing

B. Payments on retirement accounts

C. Claims not provided for by the plan

D. Claims for domestic support obligations

24. Drew and Earl are brothers. They agree to act as guarantors on a loan made by their sister, Flo. Flo defaults on the payments and Drew re-fuses to pay. Earl pays the debt. Earl can recover from

A. Drew under the right of contribution and Flo under the right of subrogation

B. Drew and Flo under the right of reimbursement

C. Drew and Flo under the right of proportionate liability

D. No one, because the parties are brothers and sister

25. Fact Pattern 20-1 (Questions 12-15 apply)

Marys home is in a state that has a $30,000 homestead exemption. Mary de-faults on a $60,000 debt that she owes to Nina. Marys home is sold at auc-tion for $80,000

Refer to Fact Pattern 20-1. Other property Mary may own that may be ex-empt from satisfaction of judgment debts includes

A. Recreational vehicles that Mary uses on weekends

B. Any property that Mary wishes to exempt

C. Tools that Mary uses in her trade

D. Investments that Mary has made in her familys businesses

26. Friendly Credit Corporation (FCC) believes that Gary may dispose of the assets that FCC expects to receive as payment for Garys debt before FCC can obtain a judgment. FCC may ask a court to issue a writ of

A. Redemption

B. Contribution

C. Execution

D. Attachment

27. Gerald files a bankruptcy petition. The resulting automatic stay will apply to Geralds

A. Alimony debts

B. Car payment debts

C. Spousal maintenance debts

D. Child-support debts

28. A Chapter 11 reorganization plan must provide for payment of tax claims over a five-years period

A. True

B. False

29. A creditor must exhaust all legal remedies against the principal debtor before holding the surety responsible for payment

A. True

B. False

30. A creditors composition agreement may be entirely enforceable

A. True

B. False