The recent New York Law Journal article “Judge Orders Promoter’s Arrest for Filing Harassing Debtor Liens” (March 11, 2014) has highlighted an emerging problem for judges, public officials, lawyers representing criminal defendants, and now, it appears, lawyers in general. Should a person be concerned if (s)he discovers that an abusive filing has been made? What steps can be taken to address it so that the filing will not be a blot on the creditworthiness of the victim?
A UCC filing refers to a form UCC-1, filed in accordance with the rules set forth in Article 9 of the Uniform Commercial Code (UCC) with the office of the Secretary of State, listing one or more items of personal property that have been pledged by the person identified by name and address as a “debtor.” It is purportedly filed by the pledgee (“secured party”) and describes the property pledged (“collateral”). The filing does not contain any other personal information about the person identified as the debtor. A legitimate filing is made by a secured creditor to “perfect” its security interest and thereby to establish its place in line vis-a-vis other security interests in the same collateral and to establish the secured party’s claim to the asset in the bankruptcy of the debtor.
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