North Las Vegas, NV asked in Bankruptcy for Nevada

Q: Does a UCC filing from a creditor terminate after filing chapter 7 bankruptcy and receiving a discharge?

The UCC was filed on 03/30/22, I filed bankruptcy on 05/10/22, because it was filed within 90 days prior to my bankruptcy filing does it become invalid? Thank you.

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1 Lawyer Answer
W. J. Winterstein Jr.
W. J. Winterstein Jr.
  • Bankruptcy Lawyer
  • Boyertown, PA

A: No.

The filing of a UCC-1 by a creditor more than ninety days prior to a bankruptcy filing (so not a preference) creates a perfected lien against identified collateral/property.

Liens are not dischargeable in a Chapter 7 case; nor can they be stripped down (the Dewsnup case).

A UCC-filing may expire after five years, if not renewed by the creditor with a Continuation Statement.

Timothy Denison agrees with this answer

1 user found this answer helpful

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