We are DelanceyStreet.com, a top tier business debt relief company based out of NYC, that helps clients nationwide. Many business owners wonder if a UCC (Uniform Commercial Code) lien, that was filed by a creditor to secure debt, shows up on their credit report. The answer can be complicated, and it often depends on how the credit reporting agencies gather their information. In some situations, a UCC filing might not appear on your standard personal credit report, but it can show up on certain business credit reports.

WHAT IS A UCC LIEN?
A UCC lien is something that was recorded by a lender or creditor in order to claim an interest in a borrower’s assets. For example, if you get a business loan, your lender could file a UCC-1 financing statement that covers specific collateral. This filing makes it public that the creditor has rights in your property. The consequence of having a UCC lien is that it can prevent you from getting new financing easily, because other lenders see the lien and worry about their ability to collect if you default.

DOES A UCC LIEN SHOW ON PERSONAL CREDIT REPORTS?
A UCC lien, that was filed for a business loan, usually doesn’t end up on your personal credit report with agencies like Experian, TransUnion, or Equifax, unless you personally guaranteed the debt. However, it may appear on your business credit profile, which is something that Dun & Bradstreet and other credit bureaus maintain. The consequence of it appearing on your reports is that you might have trouble getting future business loans.

You can find more information about how credit bureaus handle different types of debt by visiting the Consumer Financial Protection Bureau, on their official website at https://www.consumerfinance.gov/.

LEGAL IMPLICATIONS, PENALTIES, AND CRIMINAL CONSEQUENCES
A UCC filing, by itself, is not a crime. Regardless, there are scenarios that can arise if the lien is fraudulent or if the debtor tries to hide assets.

• Fraudulent Filing Penalties: A person who was found filing a fake or fraudulent UCC lien could face civil penalties, which might be thousands of dollars in fines, plus potential liability for legal fees. The consequence of fraudulent filings is that you could be sued by the harmed party, and you might owe a large monetary judgment.
• Criminal Penalties: In other cases, if a fraudulent lien was filed intentionally to harass or defraud someone, criminal charges may arise under state law or federal statutes. The consequence of such charges can be probation or even jail time, which is a serious risk for any business owner.

For more details about federal laws on fraud, you can visit the Federal Trade Commission at https://www.ftc.gov/.

STRATEGIES OF HOW WE’D DEFEND YOU
Regardless of whether your UCC lien is valid or if you’re facing allegations that you filed something improper, we can help you. Our team, at Delancey Street, focuses on all types of business debt matters. Here are some steps that we typically take when defending clients:

1. Immediate Analysis: We gather your lender agreements and loan documents that were used during the original transaction. We then analyze whether the creditor complied with UCC requirements. The consequence of uncovering any procedural mistakes is that it can lead to the lien being invalidated or modified.

2. Negotiation with Creditors: We speak to your creditors and try to negotiate a resolution. If you speak to them, they will be reasonable, in many cases. The consequence of establishing open communication is that you might obtain better repayment terms or even get the lien released early.

3. Legal Intervention if Needed: In other cases, we involve our sister-law firm, which can challenge the lien’s validity in court. If a lien is set aside, you can regain collateral, which helps your cash flow. The consequence of a court victory is that you might free up valuable assets.

For state-specific information on how to search or remove a UCC lien, you can check your Secretary of State’s official website. For example, you can visit the New York Department of State at https://dos.ny.gov/ to look up and file UCC records.

ONE OF THE BENEFITS OF WORKING WITH DELANCEYSTREET.COM
One of the main reasons clients choose us is because we have immense experience negotiating with lenders. By joining our program, you could get a UCC lien released faster, or get the debt restructured in a way that helps you avoid going out of business. We offer a free consultation, where we look at your case, and then we help you come up with a plan.