What is Article 9 Debt Relief and How Can it Help Your Business Recover?  

Introduction to UCC Article 9

UCC Article 9, part of the Uniform Commercial Code, was crafted to establish a coherent and consistent framework for secured transactions. These transactions involve a lender providing credit to a borrower with a promise of repayment backed by collateral.

Eliminating Distress: UCC Article 9 Means Business for Factors

Distressed businesses facing various types of financial hardship often turn to Chapter 11 bankruptcy as a means of debt relief. Under Chapter 11, a distressed business will typically provide a plan of action which demonstrates the company’s ability to repay its debts in full within five years. While Chapter 11 has often been a viable option for large businesses – national airlines, retailers, real estate developers – that have the luxury of both time and the ability to endure substantial expenses, it has historically not been a lifeline for small and medium-sized businesses in need of debt relief.

In fact, it is estimated that the majority of small and medium-sized businesses (with some estimates as high as 90-95% depending on the year) that pursued Chapter 11 ultimately failed to complete a five-year plan and eventually shuttered. Sadly, those very small and medium-sized distressed businesses are the ones that could have benefitted most from National Credit Partners’ debt relief services.

Furthermore, most small businesses that attempt Chapter 11 are ultimately forced to convert to a different debt relief program known as Chapter 7 liquidation. In turn, this can actually result in small business owners accumulating more debt than they had at the beginning of Chapter 11. Both small and medium-sized businesses are often unable to maintain operations over the long-term while in financial distress. Overwhelming legal costs and various miscellaneous expenses involved in such a debt relief solution can be too much for most small and medium-sized businesses to endure.

Due to the failure rate of so many small and medium-sized businesses that pursue Chapter 11, many companies in distress have sought ‘out-of-court’ debt relief solutions that will actually give them a chance at succeeding in both maintaining operations and securing long-term debt reduction.

One of those ‘out-of-court’ debt relief solutions which we at National Credit Partners have found to be particularly advantageous to small and medium-sized businesses is Article 9. Below we will provide everything you need to know about Article 9 business debt relief, including how National Credit Partners can help your insolvent company secure the financial freedom necessary to not only survive but thrive.

How Does an Article 9 Sale Work?


Article 9 is part of the Uniform Commercial Code (UCC), which is a standardized set of business laws regulating commercial business transactions and financial contracts. Available in all 50 states (although Louisiana has not fully ratified the code), Article 9 of the UCC can be an efficient option for small and medium-sized businesses in distress, allowing for a long-term, out-of-court solution which includes:

  • A full resolution of all debts (including collateralized loans and bonds)
  • No legal costs
  • No litigation issues
  • Opportunity to maintain an operational business

As an out-of-court cooperative restructuring, Article 9 preserves an operating business as a new, debt-free entity. An insolvent business cooperates with its primary lender to establish a strategic reorganization of the business.

In other words, the business owner (debtor) and the bank (creditor) work together to transfer both the assets and the business operation into a completely new and separate business entity. Said business entity has the advantage of starting anew with a clean balance sheet, effectively divesting itself of the debt accumulated through the original insolvent entity. Article 9 can be viewed as a second chance, a fresh start, and an opportunity to move forward and remain operational (eventually profitable) in spite of overwhelming debt. As Bloomberg reports, Article 9 is often the “quickest, cheapest, and easiest” way to resolve a company whose assets are worth far less than its debts.

Article 9 enables lenders to loan money that is secured by the borrower’s personal property. Under Article 9, if a debtor defaults on their debt, the creditor may then repossess the secured property.

National Credit Partners has successfully helped countless small and medium-sized businesses facing considerable financial hardship regain control and make a fresh start through Article 9 debt relief. Regardless of your company’s financial predicament, we’re here to help you achieve long-term debt relief without resorting to costly bankruptcy attorneys and the myriad pitfalls of Chapter 11.

Why is Article 9 the Best Option for My Distressed Business?


Article 9 offers insolvent small and medium-sized businesses an opportunity to establish a reorganization plan with a lender to completely remove the company’s debt and allow for a return to operating at a profit. Furthermore, Article 9 allows your business to preserve jobs and maintain the financial reputation of the company owners.

In fact, unlike Chapter 11, which can lead small and medium-sized businesses in distress down a path that results in additional debt, Article 9 can be a win-win for all involved parties: the business owners, the lenders, the employees, and even the economy.

Lenders are often motivated to engage in an Article 9 agreement with distressed businesses because the alternative is a losing proposition. When a business fails as a result of insurmountable debt, liquidation generally results. In most cases, banks that liquidate small and medium-sized businesses only recover pennies on the dollar. Moreover, the legal fees and miscellaneous expenses incurred by lenders during the liquidation process make such an alternative less than desirable. That’s where National Credit Partners can help – by negotiating a favorable Article 9 agreement that benefits your small or medium-sized business, allowing for a fresh start and future profitability.

Contact National Credit Partners today at (888) 766-3998 for a confidential and no obligation consultation. We’ll review your company’s financial situation and provide a plan via Article 9 that allows you to avoid costly bankruptcy, your company to survive (and thrive), and your workers to remain employed.


What Types of Real Estate Purchases are Covered Under Article 9?


According to the American Bankruptcy Institute, current secured transactions law draws a distinction between real estate collateral and personal property collateral. Under most circumstances, Article 9 of the UCC applies only to security interests in personal property and fixtures, not liens on real property.

Why Choose National Credit Partners for Your Article 9 Needs?


Think your company’s only option is Chapter 11? Were you turned down for a debt consolidation loan? National Credit Partners is here to help. We’ll work to negotiate a mutually beneficial Article 9 agreement for your company that helps establish a new and debt-free business in as little as 30 days.

With over 20 years of combined experience, National Credit Partners are the premier and top-rated (Better Business Bureau A+ rating for debt consolidation companies) financial professionals specializing in helping small and medium-sized businesses like yours establish debt relief agreements with creditors. If your business is insolvent and looking for a long-term solution, where here to serve as your de facto debt consolidator.

Regardless of your company’s financial difficulties, National Credit Partners can offer a solution that allows you to remain in business without having to resort to bankruptcy or costly litigation. We’ve successfully helped businesses that were in default, collections, facing legal action, and forced to contend with various other debt relief challenges qualify for traditional financing (like SBA or term loans) after graduating our program, and we’re here to help your business find a solution through Article 9.

Unlike other debt relief companies, we offer unique advantages to help your business get back on track. You’ll have peace of mind knowing:

  • We provide attorney representation for all of our clients to assist with permanently modifying/restructuring their advances
  • We strive to ensure all advances are shown as ‘paid in full’ rather than ‘settled for less’ – assuring your business remains in good standing with lenders and qualifies for financing in the future

Contact us today at (949) 676 0145 or fill out the form below to arrange for a free and no obligation consultation with one of our dedicated team members. We’ll review your company’s specific circumstances thoroughly and discreetly, and utilize our decades of experience and proven results to help you successfully modify your existing debt.

Don’t settle for an unproven financial advisor that could potentially make your business’s financial situation worse through inexperience. Choose National Credit Partners, the company offering direct, strong, and proven relationships established with countless creditors. We’ve helped companies like yours achieve the financial solutions they need to make a fresh start through personalized Article 9 debt relief.

Fill out the form below and one of our team members will reach out immediately. 



What is UCC Article 9?

UCC Article 9 is a section of the Uniform Commercial Code that governs secured transactions, outlining rules for creating and enforcing security interests in personal property.

UCC Article 9 applies to a wide range of transactions involving personal property, including both tangible and intangible assets.

Perfecting a security interest establishes the lender’s priority over other claimants and ensures the lender’s rights are protected in case of default.

UCC Article 9 influences the distribution of assets in bankruptcy, giving secured creditors priority in recovering their owed funds.

The main theme of Article 9 of the UCC is to regulate secured transactions, outlining rules for creating, maintaining, and enforcing security interests in personal property to secure loans or debts.

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