Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
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? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

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?

—

by

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).