NEW
Font size
WorksheetsDLC Questionnaire
Total questions: 35
Worksheet time: 20mins
Who can be a creditor from the following?
A person to whom money is owed
A business to whom money is owed
A Financial institution to whom money is owed
All the above are true
Which of the following is INCORRECT with respect to a Law Firm?
These are specialized firms for issuing debt that can be collected
These are firms licensed to collect debt(s) on behalf of and in the name of a creditor or debt buyer through legal means
These organizations may operate in one or more states, depending on their license to practice
What action should be taken on an account if the debtor does not respond to demand letter and the validation period is over?
Proceed with Motion for Default Judgment
Proceed with Suit Review and Preparation as next step
Proceed with sending Debt Validation Letter
Proceed with preparing Garnishment Letter
William Wordsworth took a loan on 21 December 2011 and was regularly paying EMIs. He paid his last EMI on 25 June 2013 and defaulted on payments after that. What would be the charge off date?
21 July 2011
25 December 2013
30 April 2014
25 January 2014
Which, out of the following, is first sent by a law firm to the debtor before beginning collection efforts?
Settlement Letter
Demand Letter
Summons & Complaint
Debt Validation Letter
Can a legal action be taken on the debtor within 30 days validation period from the day when Demand Letter was sent out and debtor has not responded?
Yes
No
May Be
Law Firm needs to file suit on Mary Wilson. Statement, Affidavit, Bill of Sale and Application are mandatory documents that need to be submitted in the court for filing suit. While reviewing the account, you find that Statement is not available. You will –
File Suit as Statement can be filed later
Request Statement and wait to file suit until that is received
Ask the person sitting next to you and do what he says
Call debtor and request for statement from him
Scrubs are usually performed to eliminate the following during entire debt life cycle-
Accounts under purview of SCRA, bankrupt accounts, deceased accounts
Accounts with active payment plan
Accounts with SIF approval
Accounts with active garnishment
Summons and Complaint was not served to the debtor due to bad address, what will be the next action for this debtor account -
Account should be sent for skip trace to locate debtor’s whereabouts
Proceed with filing Default Judgment
Close the account
Move the account under temporary hardship
A debtor has moved from Colorado to Washington after suit was filed on him. The law firm has license to work in New Mexico, Colorado and Washington. The law firm should -
Get the case dismissed in Colorado and file new case in Washington since Law Firm has license to work in Washington
File for Judgment
Send Debt Validation Letter to the debtor
Send Discovery to the debtor
In which phase, usually, the law firm and the debtor sign a document called ‘Stipulation’?
Pre-Suit
Post-Suit
Post Judgment
Garnishment
When does Default Judgment occur?
When the defendant does not answer to demand letter
When the defendant does not answer to discoveries
When the defendant does not answer to summons and complaint
When the defendant does not answer collection phone call
After Suit was filed, the debtor was able to present evidence in the court that he already paid prior to the Original Creditor. What will happen to the Lawsuit?
MJOP
Case will be dismissed
Default Judgment
Summary Judgment
Garnishments are post-judgment, non-legal collection method.
True
False
May Be
Information that a debtor is deceased is received from a third party per notes on the account. You are reviewing this file for Garnishment, what should be done –
File is placed on HOLD immediately for review/verify and all collection efforts should be stopped
File is sent for attorney approval
Proceed with Garnishment
"ABC Bank" sold the account of John Pierce (debtor) to "DEF" (debt buyer). "DEF" sold it to "JKL" (debt buyer). "JKL" sold it to "XYZ" (Debt buyer) and "XYZ" placed the account with "PQR Law firm" for collection. Who will be the plaintiff?
XYZ Bank
ABC Associates
PQR Law Firm
DEF Debt Buyer
When the court is unable to come up with a decision on basis of the submitted facts through discoveries, the case is set for Trial.
True
False
A Lawsuit was dismissed by the court with prejudice. This means –
The case cannot be filed again with the court
The case can be filed again with the court
You can call the debtor and request for payment
Validation of Debt letter should be sent to the debtor
Garnishments can be served to the garnishee using which of the following service method?
Employee of Law Firm personally visits the Garnishee to serve
Must be served through regular mail
Served through Process Server
Any, it depends
If the garnishee has been served, but has not answered, how can a follow up done with the garnishee or the entity that served the garnishee?
By calling court clerk or garnishee
By visiting court
By calling the debtor
By calling debtor’s attorney
What is Media?
All the supporting documents used to prove a debt against an individual or entity
It is the first formal communication between the law firm and debtor
It is the first legal communication between the law firm and the debtor
Media is settlement letter
Default Judgment is granted by the court on a debtor account where the debtor did not respond to the demand letter. The judgment amount awarded by court is $2000. On receiving Judgment copy, debtor called the Law Firm and is now willing to settle the account for $1500 saying that he cannot pay the entire amount. What should the Law Firm do?
May take the payment and settle the account if this falls under the threshold of settlement amount per the Law Firm
Proceed with Garnishment Release
Proceed with filing suit as debtor is willing to settle
Proceed with sending debt validation letter as debtor needs to understand that he owes
While reviewing an account for Suit, you see a positive scrub result for Bankruptcy, what action will you take on the account-
Will route the account to the review team, which determines the validity or reasons behind the positive hit
Will proceed with suit review and preparation
Will ask a friend and go by what he says
Summon & Complaint is not served to the defendant, suit is filed, and defendant fails to appear in court. Which type of judgment will be granted?
Default Judgment
Summary Judgment
Stipulated Judgment
All options are incorrect
While reviewing an account with active wage garnishment, you see that no payment was received last month, the next step would be-
Garnishment Follow Up by calling the Garnishee
Garnishment Follow Up by calling the Debtor
Garnishment Follow Up by calling Debtor’s spouse
Garnishment Follow Up by calling Debtor’s attorney
Lifetime Imprisonment is temporary hardship?
Yes
No
May Be
Under US collection laws, debtors have the right to not be contacted again by a law firm or a collection agency if-
There debtor has disputed the debt
If debtor is making payments
If debtor has opted for Cease and Desist
If demand has been sent
For a Serve First state, which of the following is true-
Return/Proof of Service is filed after Summons and Complaint has been filed
Return/Proof of Service is filed before filing Summons and Complaint
None of the above
While working on accounts for Garnishment process, you come across an account where you notice that Judgment has been vacated, you will-
Proceed with the account as the Judgment is just vacated, it has not expired
Inform TL and continue working on the account
Do Not proceed since judgment should not be vacated to prepare garnishment
Dismissal is a motion filed by the law firm with the court, requesting the court to grant judgment in favor of plaintiff on a case-
Yes
No
May Be
Arrange the following in order in which they are sent to a debtor by Law Firm-
i. Discovery, ii. Summon and Complaint, iii. Garnishment Release, iv. Judgment Copy
ii, i, iv, iii
ii, iv, iii, i
i, ii, iv, iii
i, ii, iii, iv
The process wherein the law firm shares reports with its clients to provide an update of the progress on the files placed by them to collect debt is known as client reporting.
Yes
No
Media requirement for an account will depend upon –
Type of Loan, court and state
Amount of Last Payment
Amount of Debt
All options are incorrect
Aliana(debtor) calls the law firm after receiving the demand letter and is requesting documents for verification since she doesn’t remember about this debt. What action must be taken on the account next –
Validation of Debt letter with supporting documents should be sent to her since she is disputing the debt
Summons and Complaint should be sent out since she doesn’t remember the debt
Demand letter must be sent to her again
She should be referred to the Original Creditor for questions
Who should review and approve the account before Filing Suit?
Plaintiff’s Attorney
Debtor’s Attorney
Creditor
Debt Buyer
