Personal Bankruptcy unsecured or secured claim

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nyjohnson

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The UCC Security agreement for the Modular Home was not filed properly in the required time frame or venue and Plaintiff failed to secure an interest in the Modular Home. Does have a secured claim? Or does Plaintiff's claim of debt becom unsecured because Plaintiff did not file the UCC security agreement on the Modular Home.
 
There is a concept known as "perfection", whereby a secured creditor takes the steps necessary to protect its position. Sounds your plaintiff may be secured but their security interest is not perfected.
 
If it was not then your case is unsecured you have no rights in the security as you did not perfect your interest in the item
 
Yes, the modular home had a title that became merged with the land when the a new loan was placed on it making it just part of the improved land.
 
Does a creditor have to prefect their lien to be a secured creditor and be exempt from the bankruptcy? I have noticed in chapter 11 on car loans the creditors must file their UCC agreements within a specific time and place or they become unsecured. Is chapter 7 different?
 
I'm not sure of the exact terminology in your jurisdiction, but I suspect they don't "perfect their lien", they file their lien which thereby perfects their security interest. If they don't, they become unsecured. (Some places, a non-perfected security interest takes priority ahead of unsecured creditors but behind perfected security interests.) I don't know enough about US bankruptcy law to comment on Chapter 7/Chapter 11 differences.
 
Yes the creditor MUST perfect their interest in the item ASAP it depends on state, here in Utah it is 45 days. If this is not done and the borrower files bankruptcy ANY Chapter, then the item is unsecured, and the Bankruptcy courts will treat it as such.
 
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