UCC strict foreclosure debtor name mismatch killing our equipment recovery
We're trying to execute a UCC strict foreclosure on commercial kitchen equipment (about $180K worth) and running into serious debtor name problems that could derail everything. Our original UCC-1 filing from 2019 shows the debtor as "Johnny's Catering Services LLC" but the business has been operating under "J&M Catering Solutions LLC" for the past two years. The debtor stopped making payments 8 months ago and we sent proper notice for strict foreclosure, but now they're claiming our UCC filing is invalid because of the name discrepancy. Their attorney is saying we can't perfect our security interest because the debtor name on our UCC-1 doesn't match their current legal entity name. We did file a UCC-3 amendment last year to add collateral but didn't catch the name issue then. Has anyone dealt with UCC strict foreclosure cases where the debtor name situation gets messy like this? We're worried about losing our entire secured position over what seems like a technicality.
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Camila Castillo
This is exactly why debtor name accuracy is so critical in UCC filings. You need to determine if "J&M Catering Solutions LLC" is actually a legal name change or if they're just doing business under a different name. Check with the Secretary of State records to see if there was an official entity name change filed. If it's just a DBA situation, your original UCC-1 might still be valid since it matches their legal entity name at formation.
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Brianna Muhammad
•Good point about checking SOS records. Also worth noting that for strict foreclosure you need to be extra careful about notice requirements. If they changed their legal name officially, you might need to send new notices to both the old and new entity names to be safe.
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JaylinCharles
•Wait, I'm confused about strict foreclosure vs regular foreclosure. Does the debtor name issue affect both types the same way? We're dealing with equipment too but haven't started any foreclosure process yet.
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Eloise Kendrick
Had a similar nightmare last year with restaurant equipment. The debtor entity had merged with another company and we didn't catch it until we tried to foreclose. Ended up having to file a UCC-3 continuation AND an amendment to fix the debtor name issue before we could proceed. Cost us months and legal fees. Your situation sounds like it might be salvageable if you can prove continuous identity between the entities.
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Lucas Schmidt
•How did you prove continuous identity? That sounds like a legal minefield.
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Eloise Kendrick
•Bank records, same principals, same business location, same equipment being used. Had to get depositions but it worked. The key was showing it was the same business operation just with a name change.
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Freya Collins
Before you go down the expensive legal route, try using Certana.ai's document verification tool. You can upload your original UCC-1, the UCC-3 amendment, and any corporate documents to check for name consistency issues. It'll flag discrepancies automatically and help you see exactly what needs to be corrected. I caught a similar debtor name problem early using their system before it became a foreclosure issue.
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LongPeri
•Never heard of that service. How does it actually work for UCC document checking?
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Freya Collins
•You just upload PDFs of your UCC documents and corporate records. It cross-references debtor names, filing numbers, and collateral descriptions to spot inconsistencies. Really straightforward and caught things our legal team missed.
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Oscar O'Neil
•That actually sounds useful. We're always worried about filing errors that could invalidate our security interests.
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Sara Hellquiem
STRICT FORECLOSURE IS TRICKY ENOUGH WITHOUT NAME PROBLEMS! I've seen lenders lose everything because they didn't dot every i and cross every t. You need to file a corrective UCC-3 amendment ASAP to fix the debtor name, then restart your strict foreclosure notice process. Don't risk having a court throw out your entire security interest over this.
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Charlee Coleman
•Is there a time limit on filing corrective amendments? We might have a similar issue brewing.
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Sara Hellquiem
•You can file corrective amendments as long as your UCC-1 hasn't lapsed. But the sooner the better, especially if you're in foreclosure proceedings.
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Liv Park
Check if your state has any case law on substantially similar debtor names. Some courts are more forgiving if the name variation wouldn't mislead other creditors doing UCC searches. But honestly, with $180K at stake, I'd fix the name issue properly rather than gamble on judicial interpretation.
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Leeann Blackstein
•What constitutes 'substantially similar' though? Seems like that could be pretty subjective.
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Liv Park
•Usually involves same key identifying words, same business type, same location. But you're right it's subjective and varies by jurisdiction.
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Ryder Greene
•We had a case where 'Mike's Auto Repair' vs 'Michael's Auto Repair LLC' was considered too different. Better safe than sorry.
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Carmella Fromis
Are you sure about the strict foreclosure procedure in your state? Some states have really specific notice requirements and if you mess up the debtor identification in the notices, you might have to start over completely. Also, did you perfect your security interest in fixtures if any of that kitchen equipment is considered fixtures?
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Samuel Robinson
•Good point about fixtures. Some of the equipment is built-in but we didn't file a fixture filing. The equipment is mostly moveable though - commercial ovens, prep tables, refrigeration units.
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Theodore Nelson
•Built-in commercial ovens might be fixtures depending on your state law. That could be another issue if you didn't file properly.
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AaliyahAli
This is why I always run document checks before starting any foreclosure action. Learned that lesson the hard way on a $90K equipment deal where we had the debtor's old corporate name. Used Certana.ai to verify all our UCC documents matched current entity information before sending foreclosure notices. Saved us from exactly this kind of problem.
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Ellie Simpson
•How long does that verification process take? We're usually under time pressure with these deals.
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AaliyahAli
•Just upload the PDFs and it checks everything in minutes. Way faster than manual document review and catches things you might miss.
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Arjun Kurti
I deal with commercial kitchen equipment financing all the time and entity name changes are super common in the restaurant industry. Businesses rebrand, merge, or restructure constantly. You really need to stay on top of UCC maintenance filings to keep your security interest perfected. File that UCC-3 amendment with the correct debtor name immediately.
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Raúl Mora
•How often should we be checking for debtor name changes? Annually?
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Arjun Kurti
•I'd say at least annually, but also any time you get notices about corporate changes or see them operating under different names. Restaurant businesses change names more than most industries.
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Margot Quinn
•That's a lot of monitoring work for multiple debtors. There's got to be a better way to track this stuff.
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Evelyn Kim
Whatever you do, don't delay on the corrective filing. Strict foreclosure has tight deadlines and if the debtor challenges your UCC filing validity, it could mess up your entire timeline. Also make sure your foreclosure notices go to both the old and new entity names to cover all bases.
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Diego Fisher
•Should the notices go to the same address or do you need to track down addresses for both entity names?
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Evelyn Kim
•Same address should be fine if it's really just a name change. But verify they're still operating from the same location.
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Henrietta Beasley
Update us on how this turns out! I'm dealing with a similar situation on some restaurant equipment and want to know if the corrective amendment approach works for strict foreclosure cases.
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Samuel Robinson
•Will do. Filing the UCC-3 amendment tomorrow morning and then we'll see if we need to restart the foreclosure notice process.
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Lincoln Ramiro
•Good luck. Restaurant equipment cases can be tough because the businesses change so frequently.
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