Quote:
Originally Posted by Exhibitman
This issue has been discussed before. They go into the bankruptcy estate and you become an unsecured creditor UNLSSS you record a UCC-1 in the state where the vault is located to put the world on notice of your ownership of the items. If you do that you elevate to the status of secured creditor and you are able to ask the court to return your items to you. If you do not, your cards get sold and maybe you get some money after all of the case costs, taxes and secured parties are paid off.
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Is it at all in the realm of possibilities that after filing the UCC-1, the court would not return the items and instead use them to pay off the pool of secured creditors? I would assume that even as a secured creditor you are not guaranteed to get back 100% of what you are owed.
If that is even remotely a possibility it would be reason enough to not use a vault. I cannot imagine the bankruptcy court is sophisticated enough or cares enough to liquidate assets in the proper manner.