Once you sign the contract, you will be giving the transfer company permission to conduct a background check.  This is standard operating procedure for the transfer company.

The transfer company will check:  credit bureaus.  By checking credit bureaus, the transfer company can glean information such as your legal residence, contact information and whatever else they need in order to go forward with the transaction.


The background check also includes:  any bankruptcy filings in the past.  If you have had bankruptcies in the past, that DOES NOT disqualify you.  However, the contract will be cancelled if you file for bankruptcy or are forced into bankruptcy during the transfer.

The transfer company looks for:  any judgments against you.  Private judgments such as "unlawful detainer" cannot interfere with your payments.

Background Checks will also include any liens and child support obligations against you.  This could interfere with your payments.  We do not know, because we do not know the details with your case.  You can find out AHEAD OF TIME by calling an independent professional adviser.

If you've been in business, the transfer company will know all about it:


The Background Check will also include searching for any UCC filings; otherwise known as Uniform Commercial Code filings.  If you properly filed a financing statement at the state and/or local jurisdiction the security interest of the secured party is perfected.

These types of documents contain the names and addresses of debtors and secured parties along with a description of collateral (security interest).  A financing statement is proof a security interest in personal property whereas a deed, properly recorded at a County Recorders Office, is proof of ownership for real property (land and buildings).

The notation that FINANCING is secured means that a company's accounts receivables, inventory, and/or other liquid assets have been pledged.



Why let the transfer company dig up the dirt and leave you humiliated in front of a court of law?  If you hired an independent professional adviser, signed a disclosure statement, began the process, there is no penalty for backing out.  The transfer company still pays the independent professional adviser, and you can still inquire about selling your payment rights before the Contract is signed, and before the transfer company even BEGINS their background investigation.