We do not recommend taking any action to perfect security interests against a debtor who has filed for bankruptcy. Once a bankruptcy case has commenced, the Bankruptcy Code prohibits all creditors from making “any act to create, perfect, or enforce against property of the debtor any lien” to enforce a security interest that arose before the commencement of the case. 11 USC 362(a)(5).
Once bankruptcy proceedings have commenced, can we file financing statements to perfect our liens on our loan collateral if we haven’t already done so?
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