[magicman37]

How can I bullet proof a Promissory Note, that I am willing to take as partial payment on my business, so that my note is 'first-in-line' if this person were to ever get sued down the road? Can I file a lien securing the Promissory Note now so it would be ahead of a judgement granted down the road if someone else sued this person and was granted a judgment against him? This person does not own any property to use as collateral so I am looking for a way to secure my promissory note from any future judgments, bank leveys or wage garnishments.

[Clough]

You may be able to file a lien. Please check out the following site under Real Estate Loans: The Promissory Note

[Fr_Chuck]

You need not to make it a promissory note, what you need to do is make the note a loan based on some real estate. But it will need to be a first mortgage, if it is a 2nd, the first gets paid first and often the 2nd or even liens after the mortgage don't get paid from a sale off.

[magicman37]

This person does not have any real estate or assets that will be worth enough to cover the note.
The only thing I am trying to do is to keep my note in first position if he were ever to get sued and a judgment granted against him.

From reading info on that site it sounds like I can not file a lien until the person defaults on the promissory note assuming there is a clause in the note that says it becomes due and payable in full on default and there is a clause that says I can file a lien if there is a default.

Any comments would be appreciated.

[Fr_Chuck]

No way to make yours the most important, But if they have no real estate or assets what lien can you get,

[magicman37]

Isn't a lien's priority based on the date it is filed?
Doesn't the first lien take precidence over any other liens including judgment liens that get filed after the first lien?

[WeAreLost]

Get a lawyer who knows what he's doing. If its a lot of money pay a lawyer to tell you the options the real options, most of the time the laws vary by state

[ballengerb1]

Your lien idea would normally be tied to a property or asset, which this person has none. Tie it to a property and it can become a sceured loan. Promissary notes are most often unsecrued. To be honest with you this sounds like a poor risk to take.

[magicman37]

I am selling a business using a promissory note for a large portion of the selling price and I want to secure the promissory note by filing a UCC-1 lien. I want to make sure that my promissory note is first in line in case the person who buys my business has a judgement lien filed against him after he buys my business.

If that were to happen I don't want somebody else to be able to come along and garnish his bank account or wages which would jeoprodize him being able to make his payments to me.
Aren't the priority of liens based on their filing dates?

[magicman37]

What about this?
If I put a clause in the promissory note that allows me to file an obligatory lien if my buyer defaults on the note then if that were to happen my lien would take precidence over any other future judgment liens. Will that work?