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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Legal
Satisfied Customers: 10628
Experience:  30 years experience corporate, litigation, international
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How do I file a UCC Lien and how do I enforce a UCC lien?

Customer Question

How do I file a UCC Lien and how do I enforce a UCC lien? Can I garnish the wages or levy banking accounts of the person that I have the UCC lien against? Is it the same process as collecting on a judgment?
Submitted: 6 years ago.
Category: Legal
Expert:  Richard - Bizlaw replied 6 years ago.
Could you describe the circumstances that lead you to need a UCC lien?
Customer: replied 6 years ago.
I sell a debt protection program and I am considering using the use of UCC liens to insure payments are made on the program and I simply need to know if a UCC lien will also register an enforceable judgment against someone.
Expert:  Richard - Bizlaw replied 6 years ago.

A UCC is used to provide collateral for a debt or some other kind of financial obligation. It applies to personal property. It is governed by the terms of a security agreement which is entered into between the debtor and creditor and pursuant to which the UCC lien is provided. It does not get filed or registered like a judgment and it is not an enforcement tool to be used in lieu of the judgment. It gives certain rights with respect to the collateral securing the debt.

 

Customer: replied 6 years ago.
Is it a contractual agreement that I could sue the debtor for to potentially obtain a judgment against them? How do I enforce it if the debtor breaches their contract with me?
Expert:  Richard - Bizlaw replied 6 years ago.

You do not need a UCC to sue someone for breach of a contract. If the person breaches the agreement you can file suit for a judgment to collect your damages.

 

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Customer: replied 6 years ago.
I understand that, but I am looking for the easiest way to go about this, to secure my interest and to enforce a UCC lien. The UCC lien will also be used for debtor protection. We are trying to create a system to block other creditors from garnishing the consumers wages and I know this can be done by being the first to enforce a judgment. So I am trying to figure out how to do this with a UCC lien without having to go through all the court channels, if it's possible.
Customer: replied 6 years ago.
Relist: Other.
I accidently pressed the Accept Answer as opposed to Reply, this person did not answer my additional question once I pressed the accept answer. I was not done with my questions.
Expert:  Richard - Bizlaw replied 6 years ago.
What you want to do you cannot do with a UCC lien. If you are dealing with a promissory note you could consider a confession of judgment which expedites the judgment process but must be very precisely done to be effective.
Customer: replied 6 years ago.
I know you cannot give legal advice, but can you explain a confession of judgment and exactly how it works. When you say that it must be precisely done....what are the steps of the procedure? Wany websites that I can view?
Expert:  Richard - Bizlaw replied 6 years ago.

A confession of judgment is used in connection with a promissory note. It basically works this way if the person defaults, the confession of judgment can be filed and the court issues the judgment. They are governed by state statute and the court's do not like them because they circumvent the normal process. So they are only available in a limited number of circumstances, generally promissory notes and you must follow state procedures precisely. In MO the statute is 511.070 and the following sections.

 

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Customer: replied 6 years ago.
I am trying to create a program where no one from my company would have to appear in court in order to obtain a judgment. Do you know if a representative from my company would have to appear in court for a judgment hearing?
Expert:  Richard - Bizlaw replied 6 years ago.

I doubt you can get a judgment without someone with personal knowledge appearing in court. Even on a default judgment you generally have to appear to prove up what the damages are unless it is on something like a promissory note.

 

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.