Kabbage UCC lien enforcement - debtor dodging payments after business closure

This is key - the collateral schedule language makes all the difference in enforcement actions.

Yeah but even with good UCC-1 language, finding the actual assets after business closure is the real challenge.

How did you track down the storage unit? That's brilliant detective work.

Process server caught them moving stuff there, plus we subpoenaed their business bank records which showed the storage rental payments.

Storage units are actually common hiding spots. Most debtors don't realize we can still reach assets there with proper legal process.

Interesting point about name matching. Our debtor operated under a DBA that might not match the legal entity name on the UCC-1.

Exactly! The Certana tool lets you upload your UCC-1 and corporate docs to verify everything aligns. Way easier than manually cross-checking all the entity names and variations.

DBA issues kill so many otherwise solid enforcement cases. Better to catch that now than in front of a judge.

Hey now, not all Kabbage deals are bad. Some of their recent stuff has better documentation.

Maybe the newer ones but anything from 2023 was still pretty rough around the edges in my experience.

Good point on bankruptcy. That would trigger automatic stay and change the whole enforcement strategy.

No bankruptcy filing yet but you're right that entity status is worth verifying. Business showed as active when we filed but who knows what they did before closing.

Run a current entity search with the state. If they dissolved improperly you might have additional collection avenues through piercing corporate veil.

This. Also check for new business registrations by the same principals. They often just start fresh with similar business model.

Don't forget to search property records. Sometimes they think putting equipment at their house makes it unreachable.

Exactly. Residential property doesn't protect business assets from properly perfected UCC liens.

How quickly should they move on the replevin? Days, weeks?

Days if possible. Once word gets out that you're pursuing enforcement, assets have a way of disappearing even faster.

Also consider posting bond for wrongful replevin protection. Shows you're serious and protects against counterclaims.

No, UCC-3 amendments are for changes during the financing period. Business closure doesn't automatically terminate the lien.

Right, the UCC-1 stays effective until expiration or termination. Business status changes don't affect the filing itself.

Ok that makes sense. I was confusing it with some other filing requirement.

Corporate suffix errors are so common but easy to miss until it's too late.

This is exactly the kind of detail I'm worried about missing. Going to run our docs through their system.

Smart move. Better to catch any issues now than have the debtor's lawyer use them to challenge your enforcement action.

Should preservation notices go to family members too if there's suspicion of asset transfers?

If you have reasonable basis to believe they received business assets, yes. But be careful not to overreach without evidence.

This is why I always recommend independent UCC filing review before enforcement. Too much money at stake to assume everything was done right.

Agreed. Volume lenders sometimes cut corners on filing accuracy.

Good point. I'm going to do a thorough review of our filing before taking any enforcement action. Thanks everyone for the advice.