Clark v. Deere & Co. (In Re Kinderknecht)

MEMORANDUM OPINION 1

JOHN T. FLANNAGAN, Bankruptcy Judge.

A bankruptcy trustee can use § 544(a)(1) of the Bankruptcy Code to avoid a security interest in personal property that is unperfected on the date of the bankruptcy petition. 2 Under Revised Article 9 of the Kansas Uniform Commercial Code, a filed financing statement will perfect a security interest unless the financing statement is seriously misleading. 3 The question here is whether financing statements filed in the debtor’s commonly used nickname are seriously misleading when a search of the U.C.C. filing system under the debtor’s…