UCC Liens Attorney in New York
Assisting Business Owners with All Aspects of UCC Liens Filings
A UCC liens filing, or a UCC filing, allows small business owners to obtain loans in exchange for having a lien placed by the lender on equipment and/or business assets. Under the Uniform Commercial Code—where the “UCC” in “UCC liens filing” comes from—UCC filing is a fairly uniform practice from state to state. In any case, if you are a small business owner who has received notice from a creditor of the creditor’s interest or right to property under a UCC-1 lien, the aforementioned property/assets could be seized to pay off your debts in the event that you file for bankruptcy or default on your loan.
At Jacovetti Law, P.C., we assist clients with a variety of issues related to UCC liens filings. Our firm exclusively represents business owners in UCC filing matters; we are committed to protecting the interests of small business owners in the state of New York and beyond.
To speak to a New York UCC lien filing attorney, contact Jacovetti Law, P.C. at (516) 217-4488. We offer free 30-minute initial consultations, as well as payment plans for those who qualify.
What Assets Can a Lender Place a UCC Filing On?
In general, a lender is permitted to place a UCC lien filing on a wide range of personal and/or business properties and assets.
These typically include:
- Real estate
- Commercial operating equipment
- Office equipment
- Investment securities
- Promissory notes
- Letters of credit
While this represents a general overview of the types of properties and assets a lender may place a UCC filing on, there will be variations from state to state. To learn more about the types of assets a lender can place a UCC lien filing on in the state of New York, contact our New York UCC filing attorney today.
How Does a UCC Lien Influence Businesses?
Sometimes small businesses need help starting out or staying afloat when times get hard. There are many obstacles that can arise without notice. Many small business owners turn to loans to get the money they need when all of their options are exhausted. Even though it may seem like a quick and easy solution, it comes with many complications if you are unable to pay any of your loan payments in a timely manner.
In the state of New York, UCC liens have a five-year term, they can be re-established by the lender if your loan is still active. A UCC lien can influence your commerce in three ways:
- Prohibits extra borrowing: Most small businesses have constrained resources to offer as collateral when taking out a loan. They will have great difficulty trying to take out additional loans because of that.
- Impacts credit report: Your bank loans and UCC liens from the previous five years will all show up on your credit report. It will include your status, collections and debated sums. Nonetheless, as long as you're careful about how much your loan is and mindful about your installments, the lien shouldn't affect your credit score.
- Risking promised resources: A UCC lien puts your business’ assets at risk if you miss a loan payment.
We understand that the lien process can be perplexing and confusing. Our skilled lien attorneys are here to provide you with peace of mind. We are here to make sure you understand your options! Give us a call today to review your case and schedule a consultation!
Issues with UCC Lien Filings
Many business owners do not realize that they should continue to keep track of any UCC filings their lenders may have placed on business properties/assets, whether or not they are current. This is due to the fact that, even when a loan has been paid in full, the lender may not automatically end the UCC lien filing. This can, in turn, lead to problems when the business owner is attempting to secure additional loans or make arrangements with other lenders. Ultimately, this could affect your ability to secure much-needed small business financial funding.
If you are dealing with UCC lien filing issues, including poorly structured filings, Jacovetti Law, P.C. can help. Attorney Robert Jacovetti has an in-depth understanding of the law and can help you understand your legal rights and ensure they are protected. We work to provide personalized debt solutions for business owners in New York and throughout the nation.
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