musiclawyer
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Tue Dec-05-06 01:47 PM
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Questions for debt collection attorneys (UCC-1) |
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Excuse my ignorance about debt collection. If a client loaned money to a debtor company, and client filed a UCC-1 filed to perfect a security interest in the debtor's inventory/assets etc, my understanding was that the UCC-1 simply established priority in case of a bankruptcy or someone else obtaining a judgment. Am I correct? Or does it do something else? If the debtor is in defeault and they fail to respond to formal payment demand, do you just bring suit for money? What good is the UCC-1 if your client is the one who has to sue? Thanks.
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MrCoffee
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Tue Dec-05-06 02:15 PM
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1. The UCC-1 is prima facie evidence of the SA |
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Edited on Tue Dec-05-06 02:15 PM by MrCoffee
You still have to sue to enforce the security agreement (edit: and underlying uncollected debt), but if the UCC-1 was filed properly with the SoS, you shouldn't have much problem getting summary judgment for the client.
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DU
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Fri Apr 26th 2024, 04:20 AM
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