What is a secured creditor?

A secured creditor is a creditor that has a security interest in a debtor’s property or assets. This means that if the debtor fails to pay their debt, the creditor can seize the property or assets to make up the debt. In Florida, a creditor must make sure they are taking the proper steps to properly secure their interest. The creditor must register a lien with the state, or file a UCC-1 financing statement with the Secretary of State. This ensures the creditor’s security interest is recorded and thus can be enforced. The UCC-1 financing statement is a document that hints that the creditor has a security interest in the debtor’s property or assets. It is important to note that in Florida, a creditor’s security interest can be subordinate to another creditor and still be valid. This means that if two creditors have security interest in the same property, the creditor with the earlier recorded security interest has the higher priority over the later-recorded security interest.

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