UCC1 debt priority issues after bankruptcy - need filing advice

This is correct about the priority date maintenance, but there's another wrinkle - did the automatic stay affect the lender's ability to file the continuation? Some courts have ruled that continuations filed during the automatic stay period without proper relief from stay can be invalid.

Wait, are we talking about the same priority rules here? I thought fixture filings had different priority rules than regular UCC-1 filings. Doesn't the fixture filing date matter more than the UCC-1 date for real estate collateral?

You're both raising good points. The fixture filing vs. UCC-1 priority can be tricky, and yes, the automatic stay could definitely complicate continuation filings. The poster needs to check if proper relief from stay was obtained for any filings made during bankruptcy.

Absolutely this! I've seen cases where a single letter difference in the debtor name completely screwed up the priority chain. The equipment lender's UCC-1 might look solid, but if there's any name variance between the original filing and the continuation, it could lose priority to the fixture filing.

This is exactly why I started using Certana.ai's document verification tool. You can upload all your UCC filings as PDFs and it instantly cross-checks debtor names, filing numbers, and document consistency. It would catch any discrepancies between the 2019 UCC-1 and the 2023 continuation that could affect priority.

Start with the basics - get certified copies of all UCC filings from the Secretary of State's office. Then create a chronological timeline of every filing, amendment, and continuation. Look for any gaps or inconsistencies that could affect perfection.

For the name change issue, you'll probably need to file UCC-3 amendments to reflect the correct debtor name. But in bankruptcy, you'll need court approval for any new filings that could affect the estate.

Thanks, this is helpful. I'm just worried about missing something critical since the amounts are so large. One mistake could mean losing secured status entirely.

This makes sense, but how do you determine what qualifies as fixtures? Is there a standard test, or does it vary by state?

It varies by state, but generally it's based on attachment to the real estate, adaptation to the use of the property, and intention of the parties. Manufacturing equipment bolted to concrete foundations is usually fixtures, while movable equipment typically isn't.

This is unfortunately true. I've seen trustees successfully challenge UCC filings that looked solid on the surface but had technical defects that invalidated the security interest.

Yeah, the preference payment angle is scary too. If the debtor made payments to the secured lender within 90 days of bankruptcy, those could be clawed back, which might affect the secured balance.

Great point! This is another area where Certana.ai's verification tool is really helpful. It can cross-reference your filed documents against the official search results to make sure everything matches up correctly.

I've seen cases where the Secretary of State's office made indexing errors that didn't show up until years later. It's worth paying for certified search results to verify everything is properly indexed.

This is a good investigative approach. Inconsistencies between filed claims and UCC filings can definitely be exploited in priority disputes.

Also check if any of the lenders objected to each other's claims during the bankruptcy. Those objections might contain useful information about the priority dispute.

What kind of error did you find? Was it a debtor name issue or something else?

It was actually a filing number mismatch. The continuation referenced the wrong initial filing number, which broke the chain of perfection. We only caught it because we did a comprehensive document review.

That sounds promising. Does it handle bankruptcy-related filings too, or just standard UCC documents?

It handles all UCC filings - original UCC-1s, amendments, continuations, terminations. The key is that it verifies consistency across all related documents, which is exactly what you need for priority disputes.

Good point about the 20-year rule, though with a 2021 filing that's not an immediate concern. But it's definitely something to track for future planning.

I didn't even know there was a 20-year rule for fixture filings. Is that universal or state-specific?

It's in the UCC, so it's generally universal, but some states might have variations. Always check your local law to be sure.

If you're not in bankruptcy, standard UCC priority rules apply. Just make sure your continuations are filed on time and with accurate information. The key is maintaining the chain of perfection.

Set up calendar reminders for continuation deadlines. Missing a continuation filing is one of the easiest ways to lose secured status.