Check an unperfected security interest against the trustee's avoiding power
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- The tool lists the petition date, the perfection date, and whether a financing statement was filed before or within 20 days after the debtor received delivery. It does not say the interest is property of the estate.
- What the lawyer must review
- 11 U.S.C. § 544(a) and UCC Section 9-317. As of commencement, and without regard to any knowledge of the trustee or of any creditor, section 544(a) gives the trustee the rights of a creditor that obtains a judicial lien, the rights of a creditor that obtains an execution returned unsatisfied, and the rights of a bona fide purchaser of real property other than fixtures. The trustee may avoid a transfer that is voidable by such a creditor. Section 9-317(a)(2), except as subsection (e) provides, subordinates a security interest to a person who becomes a lien creditor before the earlier of the time the interest is perfected or the time one of the conditions in Section 9-203(b)(3) is met and a financing statement covering the collateral is filed. Subsection (e), except as Sections 9-320 and 9-321 provide, gives a purchase-money security interest priority over the rights of a buyer, lessee, or lien creditor which arise between attachment and filing, if the financing statement is filed before or within 20 days after the debtor receives delivery. The lawyer decides whether the trustee may avoid the transfer.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.