Can you explain the steps for a person to file a ucc-1 purely so they can have priority over their property first as opposed to any lenders or the irs please

Filing a UCC-1 form, or a Uniform Commercial Code-1 Financing Statement, is a way for individuals or businesses to publicly declare their interest in certain types of personal property as collateral for a loan or obligation. However, it's important to clarify that the UCC-1 does not give you absolute priority over your property against lenders or tax authorities like the IRS. Instead, it helps establish a legal claim to the property that can be recognized in the event of bankruptcy or disputes. If you're interested in filing a UCC-1 to protect your interest in your property, here are the general steps you would take: ### Steps to File a UCC-1 Financing Statement 1. **Determine the Need for Filing**: Understand why you are filing the UCC-1. Generally, it's to secure a loan or obligation. If you're trying to merely assert your ownership or priority over property against the IRS or lenders, consult a legal professional to understand the implications and effectiveness of such actions. 2. **Gather Necessary Information**: - **Debtor Information**: This includes the name and address of the individual or entity that is borrowing money or is securing the interest. - **Secured Party Information**: This is typically the name and address of the entity or individual that is providing the financing or claiming the security interest. - **Description of Collateral**: Provide a clear and specific description of the property being used as collateral. It must meet UCC requirements for description. 3. **Complete the UCC-1 Form**: Obtain a UCC-1 form, which can typically be filled out online or printed if you're filing on paper. Fill out the form with the necessary information you’ve gathered. 4. **Submit the UCC-1 Filing**: - **File with the Correct Office**: Depending on the nature of the collateral (real property vs. personal property), you will need to file with the correct office: - If it’s personal property, you file with the Secretary of State’s office in the state where the debtor resides or is incorporated. - If it’s related to real estate, you may need to file in the county where the property is located. - **Pay the Required Fee**: There is usually a filing fee associated with submitting the UCC-1 form, which varies by state. 5. **Receive Confirmation**: After submitting the UCC-1 form, you should receive a confirmation of your filing. Keep this confirmation for your records as it serves as proof of your secured interest in the collateral. 6. **Review and Monitor**: After filing, make sure to monitor the status of your filing. It’s important to ensure that the UCC-1 is maintained and renewed if necessary, as security interests may expire after a certain period (usually five years). ### Important Considerations - **Legal and Tax Implications**: Filing a UCC-1 does not necessarily protect you from tax liens or claims by the IRS. It's advisable to consult with a legal or financial advisor to understand how filing may impact your situation. - **Conflicts with Creditors**: If you’re attempting to assert priority over property against other creditors or the IRS, especially concerning unpaid debts or taxes, consult a legal professional familiar with security interests and tax law. - **Legal Advice**: Given the complexities involved in securing interests in property and potential conflicts with tax authorities or lenders, obtaining legal counsel is highly recommended before proceeding. Filing a UCC-1 can help establish your interest in property, but it’s not a foolproof method to ensure priority over all lenders or tax authorities. Always consider seeking professional legal guidance tailored to your specific circumstances.