We get it. You might feel stuck when you discover a UCC lien that was placed on your business, which can lead to serious problems with your cash flow. This type of lien can stop you from getting new funding, and it can even cause creditors to come after your collateral.

Regardless of how you got here, you are not alone. We are DelanceyStreet.com, a top tier business debt relief company that focuses on helping clients nationwide. We truly believe that a UCC lien can be resolved with the right strategy, which can result in you regaining control over your business.

WHAT IS A UCC LIEN?
A UCC lien is a legal claim that was created under the Uniform Commercial Code, and it gives a lender rights over certain assets of your business. You can check out the Uniform Commercial Code text on Cornell Law School’s website. If you do not remove a UCC lien, you might face restricted access to new term loans or SBA loans, which can make growth difficult.

WHY IS A UCC LIEN A BIG DEAL?
A UCC lien that was filed by a creditor will appear on your business’s record, which can discourage other lenders from approving new agreements. This can result in serious damage to your ability to get loans or lines of credit. If you try to ignore the lien, there can be penalties that include lawsuits or forced collection actions, which might lead to significant debt.

POSSIBLE CRIMINAL AND CIVIL PENALTIES
Attempting to conceal assets that were pledged in a UCC lien might be considered fraud, which can result in major criminal charges. An intentionally false statement that was made on official documents can lead to state or federal penalties, and it can potentially include prison time or large fines.

STRATEGIES TO REMOVE OR “GET AROUND” A UCC LIEN

1. Full Repayment: A debt that was satisfied in full can be discharged, which can result in the creditor filing a UCC-3 termination statement. This effectively removes the lien.
2. Negotiate a Settlement: A debt settlement that was negotiated with the creditor can reduce your overall balance, and it might lead to an agreement that removes the lien. We excel in negotiating with major lenders, and we can focus on persuading them to release the UCC lien once a settlement is reached.
3. Refinance or Consolidate: A business debt consolidation loan that was used to pay off the existing obligation can free your business from the old UCC lien, which can give you better repayment terms. You can learn more about consolidation and UCC-related forms by visiting your state’s official Secretary of State website.
4. Prove the Lien Is Invalid: If the lien that was filed is outdated or was filed in error, you can challenge it, which can force the creditor to remove it. This typically involves sending official letters and proof that the debt is invalid.
5. Work With Experienced Attorneys: We have a sister-law firm that was founded by an attorney who is admitted to practice in the NY Bar, and we can bring legal expertise to help you navigate any dispute or lawsuit that results from a wrongful UCC lien.

CONSEQUENCES IF YOU IGNORE A UCC LIEN
A UCC lien that was ignored can cause creditors to seize your collateral, which can wipe out the assets your business relies on. If you fail to pay, you can face default judgments, which can allow creditors to garnish bank accounts or set up further collection actions.

HOW DELANCEY STREET CAN HELP
We are proud to say our team is available 24/7, and we are able to use data from your financial documents in order to demonstrate your hardships. This can lead to successful negotiations that reduce your overall balance. We excel in negotiating up to 70% off certain debts, which can help your business maintain its vital cash flow.

When you choose Delancey Street, we handle your phone calls with creditors, we handle your negotiations, and we handle your lawsuit if necessary. Our approach is simple:

• We fight. We use every legal strategy to protect your assets.
• We protect. We ensure you have the best chance of saving your business.
• We win. We aim for a resolution that is in your best interest, which can help you move forward confidently.