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Regarding UCC-9601, a commercial printer and the "One Action Rule"
Hi All,
I would greatly appreciate your opinion on this matter.
Mr. "A" buys a "commercial" printer and signs a "commercial finance agreement" acknowledging that remedies are not mutually exclusive in the case of default. Mr. "A" defaults on the monthly payments and the creditor chooses not to repossess the printer, but to get a monetary judgment.
After the judgment is issued, client files a Chapter 7 bankruptcy seeking a discharge of the money judgment. The creditor says that they are still entitled to the printer under UCC 9-601 and alleges that the "One Action Rule" does not apply in this commercial case. Creditor alleges that even after a bankruptcy filing, the creditor is entitled to the return of the printer and the proceeds of the printer sale would be applied towards the debt.
Question - Is the creditor entitled to the return of the commercial printer after receiving a monetary judgment? If so, please explain why.
Tamala Johnson
Attorney
Winterbotham Parham Teeple, a PC
12631 E. Imperial Hwy, Suite F-224
Santa Fe Springs, CA 90670
Office: (562) 868-3634
FAX: (562) 868-5599
Email: [ tamalaj@4bankruptcy.com ]( mailto:tamalaj@4bankruptcy.com )
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Hi All,
I would greatly appreciate your opinion on this matter.
Mr. "A" buys a "commercial" printer and signs a "commercial finance agreement" acknowledging that remedies are not mutually exclusive in the case of default. Mr. "A" defaults on the monthly payments and the creditor chooses not to repossess the printer, but to get a monetary judgment.
After the judgment is issued, client files a Chapter 7 bankruptcy seeking a discharge of the money judgment. The creditor says that they are still entitled to the printer under UCC 9-601 and alleges that the "One Action Rule" does not apply in this commercial case. Creditor alleges that even after a bankruptcy filing, the creditor is entitled to the return of the printer and the proceeds of the printer sale would be applied towards the debt.
Question - Is the creditor entitled to the return of the commercial printer after receiving a monetary judgment? If so, please explain why.
Tamala Johnson
Attorney Winterbotham Parham Teeple, a PC12631 E. Imperial Hwy, Suite F-224
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