Secured Transactions

Any transaction that involves the use of collateral to secure a debt, a secured transaction, requires careful consideration and adherence to the rules of the Uniform Commercial Code regarding perfection of security interests. A creditor who fails to properly perfect its security interest may find itself at the end of a long line of unsecured creditors if a debtor files for bankruptcy protection. An unperfected or under-perfected security interest is, in many cases, worth little more than no security interest at all.

In cases that involve consumer retail loans, the collateral given to secure a debtor's obligation may not be in the possession of the creditor. These types of cases require careful planning on behalf of the creditor in order to ensure that their security interest is properly perfected. The new Article IX of Michigan's version of the Uniform Commercial Code has changed many of the rules regarding secured transactions. Our Creditors' Rights attorneys work closely with our clients to ensure that their security interests are properly perfected under these new rules; that their financing statements are filed timely; and that they comply with other UCC requirements that are necessary to protect their valuable collateral.

While we believe that our clients' interests are best protected by careful legal planning, businesses or financial institutions which engage in secured lending will inevitably experience some rate of default. Our experienced attorneys are well-versed in Michigan UCC law and other issues related to secured transactions and will work quickly to protect your interests.

For more information or to set up an appointment to speak to one of our attorneys, please call (517) 787-9481 or click here.