Before an ABC is made, a thorough search of UCC filings against the business is essential. This search reveals which creditors claim security interests in business assets — information that shapes the entire distribution analysis.
How to Search UCC Filings
California UCC financing statements are searchable through the California Secretary of State’s online database. Search the business entity name and any variation. Review each filing for: the secured party’s identity, the collateral description, the filing date, and whether the filing is current. A lien search should also cover any real property in the county recorder’s office.
What you find — or don’t find — determines the waterfall. A business that appears to have significant assets may actually have those assets fully encumbered by secured creditors, leaving nothing for unsecured creditors. The lien search is the foundation of any realistic distribution analysis, and it should be completed before the Assignment Deed is executed.
The California ABC System gives business owners and creditors the exact tools, templates, and step-by-step guidance to navigate an Assignment for Benefit of Creditors — faster and cheaper than bankruptcy. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
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