Article 9 of Uniform Commercial Code a cost-efficient tool for struggling businesses

Many struggling businesses need the protections offered by Chapter 11 bankruptcy, but Chapter 11 is not the right choice or even feasible for every business with heavy debt. Chapter 11 is highly procedural and costly in terms of money and time, and there may be better options for debtors and creditors alike.

For example, if a business needs to sell assets to resolve debt problems, then Article 9 of the Uniform Commercial Code, which is recognized in each state, may be the most cost-efficient tool for completing the sale. Article 9 can be particularly beneficial because the debtor and the creditor can avoid or reduce costs associated with going to court.

When a debtor defaults, Article 9 allows the debtor to turn over its assets to the secured creditor, who can take possession of the property without going to court. The creditor can then choose to sell the assets in a private or public sale.

Article 9 also allows creditors to use the state courts to repossess assets in the event that a debtor doesn't want to give up the property. In that sense, an Article 9 sale is like a foreclosure sale.

Whether you're a creditor or a debtor, it is important to choose the most cost-efficient method of resolving debt issues. A debt relief and bankruptcy attorney can assess your situation and help you explore the full range of options.

If you have questions about negotiating, restructuring or exchanging debt, then Shulman, Hodges & Bastian's overview of out-of-court solutions may prove helpful.

No Comments

Leave a comment
Comment Information
  • NBLSC Board Certified Lawyer Rated By Super Lawyers | Ryan P. Durham Rated By Super Lawyers | Ben Boston
  • Tennessee Association For Justice | Member 2015-2016 American Association For Premier DUI Attorneys The National Trial Lawyers | Top 100 Trial Lawyers
  • American Institute of Family Law Attorneys | 10 best 2015 American Institute of Personal Injury attorneys | 10 best 2016 AV preeminent |  Jeffery Broker

Schedule a Consultation Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Shulman Bastian LLP | Full Service. Business. Lawyers.

100 Spectrum Center Drive
Suite 600
Irvine, CA 92618

Map & Directions

3550 Vine Street
Suite 210
Riverside, CA 92507

Map & Directions