The Bankruptcy and Creditors' Rights Bulletin provides an analysis of legal issues, recent court decisions and significant changes in bankruptcy and creditors' rights law.
Below are the articles for the October issue. To view, click on the appropriate title and you will be brought to the full version of the article below.
1. Prior Law: The prior version did not provide any guidance as to the sufficiency of an individual debtor’s name. It only provided that the financing statement sufficiently provided the name of the debtor if it provided the “individual name” of the debtor.
2. New Law: The 2010 Amendments provide states with two alternatives to sufficiently identify the name of an individual debtor in a financing statement:
a. Alternative A, the “only if” approach requires that if the debtor has an unexpired driver’s license, the debtor’s name as it appears on the driver’s license must be used on the financing statement. “Only if” the debtor does not have an unexpired driver’s license should the debtor’s individual name (legal name), or surname and first personal name be used.
b. Alternative B, the “safe harbor” approach provides that any of the following shall be sufficient: (a) the debtor’s name exactly as it appears on the debtor’s unexpired driver’s license issued by the resident state; (b) the individual name of the debtor (legal name); or (c) the debtor’s first personal name and surname.