After reading this chapter, you will be able to answer the following questions: How can liens assist creditors? What are the various kinds of statutory liens available to creditors? What are the various kinds of judicial liens available to creditors? How does mortgage foreclosure assist creditors? What is a creditors’ composition agreement for the benefit of creditors? What is an assignment for the benefit of creditors? What are suretyship and guaranty contracts? | Chapter 31 Other Creditors’ Remedies and Suretyship Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 31: Other Creditors’ Remedies and Suretyship Lien (Definition): Claim to property (or proceeds of sale of property) 31- A “lien” is a claim to property (or proceeds from the sale of property.) 31- Types of Liens Consensual Lien: Secured interest in property created by agreement of parties Statutory Lien: Claim to property created through statute Mechanic’s Lien: Claim on real property Artisan’s Lien: Claim on personal property Types of liens include a “consensual” lien, where a secured interest in property is created through the agreement of the parties; a “statutory” lien, where a claim to property is created through statute; a “mechanic’s lien, or a claim on real property; and an “artisan’s” lien, or a claim on personal property. 31- Types of Liens (Continued) Judicial Lien: Legal action whereby creditor seize debtor’s property to satisfy debt Attachment: Court-ordered judgment permitting local court officer to seize debtor’s property Writ of Execution: Document authorizing law officer to seize debtor’s non-exempt property Garnishment: Order that satisfies debt by seizing debtor’s property that is being held by third party (such as bank or employer) A “judicial” lien is a legal action whereby a creditor seizes a debtor’s property to satisfy the debt owed. An “attachment” is a court-ordered judgment permitting a local court officer to seize the debtor’s property. A “writ of execution” is a document authorizing a law enforcement officer to seize a debtor’s non-exempt property. “Garnishment” is an order that satisfies the debt owed by seizing the debtor’s property held by a third party (such as the debtor’s bank or employer.) 31- Exhibit 31-2: Other Types of Liens Attorney’s Lien: Right of attorney to keep client’s . | Chapter 31 Other Creditors’ Remedies and Suretyship Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 31: Other Creditors’ Remedies and Suretyship Lien (Definition): Claim to property (or proceeds of sale of property) 31- A “lien” is a claim to property (or proceeds from the sale of property.) 31- Types of Liens Consensual Lien: Secured interest in property created by agreement of parties Statutory Lien: Claim to property created through statute Mechanic’s Lien: Claim on real property Artisan’s Lien: Claim on personal property Types of liens include a “consensual” lien, where a secured interest in property is created through the agreement of the parties; a “statutory” lien, where a claim to property is created through statute; a “mechanic’s lien, or a claim on real property; and an “artisan’s” lien, or a claim on personal property. 31- Types of Liens .
