UCC-1 "freeze" on funds held with credit card
Posted: Sat Nov 25, 2017 9:49 pm
It seems to me that these funds would be cash collateral. So long as you pay a percentage of the revenue to the processor, you should be able to get a stipulation in place, or even win a motion for authorization to use the cash collateral.- John D. Faucher
On Thursday, November 23, 2017 5:50 PM, "Holly Roark hollyroark22@gmail.com [cdcbaa]" wrote:
Creditor sent credit card processor a letter along with the properly filed UCC-1 filing showing it has a security interest in the receivables of the LLC and requesting that credit card processor freeze/hold funds for creditor. Despite the UCC-1 lien attaching to the funds, if Debtor files Chapter 11, can I get funds released to Debtor (avoid lien, etc.)?
If funds are turned over to creditor, can I recover funds from creditor after filing?
In other words, are the funds a goner at this point now that creditor has served notice on the credit card processing company of its perfected UCC-1 lien?
Holly RoarkCertified Bankruptcy Specialist*
and Sports Lawyer
holly@roarklawoffices.com**primary email address**www.roarklawoffices.comCentral District of California & District of Idaho - Consumer Bankruptcy Attorney1875 Century Park East, Suite 600 Los Angeles, CA 90067T (310) 553-2600; F (310) 553-2601*By State Bar of California Board of LegalSpecialization
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