What should I do if a UCC lien has been filed against my business?
If a UCC has been filed against your business by a merchant cash advance company or a high-interest lender, most likely it's because you're in default.
Why Was a UCC Lien Filed Against My Business?
The reason they do this is so that they can collect on the debt that your business owes them.
Now, maybe you're in a disagreement about the actual amount of the debt that's owed. Maybe you're able to make partial payments, but you can't make the daily or weekly payments that are required. Or maybe you're in settlement discussions with them, but all of a sudden you find yourself in a situation where your customers are calling you telling you that they can't send you the revenue that you've earned. Instead, they're going to have to direct it to your creditor.
Let an Attorney Review Your UCC Settlement Before Signing
This is not something that you will easily be able to resolve on your own. This is advanced to a collection process that can be difficult to get out of. Seek the advice of a local attorney, even if one of these creditors offers you a settlement — a way to get out of the situation, to lift the UCC. Make sure a local attorney looks at that agreement before signing it.
Every situation is unique. If you have questions, contact our office. We'd love to help.
The material and information contained on this website is for general information purposes only. You should speak with an experienced attorney in your area before making any legal decisions.
