Computer Assets

[businessman]

I owned a PC and Xbox gaming center, and I had to close it down because we were evicted for non-payment of back rent. We fell behind with the recession and could never catch up.

I had bought about 30 computers from a friend up north and was paying him payments on them. I've held off making payments until our bankruptcy is filed and discharged, but I've had to sell about 10 of them over the past 2 months to help pay for rent and groceries while I try to find a job.

I plan on paying my friend payments after the BK is discharged, but I'm wondering what will happen if my commercial landlord tries to come after these computers when he gets notice of my filing. At my 341 hearing, will he be able to contest that I have assets, even though I still owe someone for them?

[biotechsolution]

Yes, all of those computers will be considered assets by the trustee. They can be sold and then the proceeds going to creditors.

Do you have a lease or purchase agreement for the computers?
If so then they are secured and will just go back to that creditor, if not, they are property of the estate and the trustee can sell them and give the money to the landlord.

[businessman]

Thank you for the response. Some additional information...my former partner is threatening to sue me because I removed the equipment from the premises as a result of some very fishy unethical things I saw happening.

I have receipts for all the equipment, so I will be able to prove my ownership in court, right? I do have an outstanding purchase agreement with a friend that I plan on paying, but now I have no source of income since the business is dissolved. Should I delay my bankruptcy to see if he sues, and then file if he wins some kind of judgement, which he shouldn't, I believe?

The thing is, I need to sell some of the equipment (that I do own) and pay my rent and get some groceries. Just wondering if delaying might be prudent. I've tried reasoning with this person and he won't have it. Today he threatened to use deadly force on me if I tried to leave the store with my router. Anyway, I'll save the story for later. Any thoughts?

[keepmine]

I'd not file until, you have a job and a basic safety net in place. After all, you have to support yourself post bk. So what if he sues.Sounds like you have nothing he can take and the debt that created any judgment will be discharged in bk.
You're not under the trustees thumb right now and you can sell personal property to pay living expenses.
Right now, the debt is the least of your problems. Put the bk on the backburner until you have some income rolling in.

[businessman]

Thank you for the advice...makes sense.

[businessman]

Another question. I've changed my phone number and have just moved, and I don't want my former partner to be able to find me, mainly because he seems like a loose cannon...my wife and I don't feel safe around him, as he carries a (licensed) gun most of the time.

What if he sues me and service can't find me? Will that put me in a bad spot since I won't know how or when to respond?

My driver's license hasn't been updated yet with our new address, and there is no documentation he has access to that I know of that has our new address or phone number, either.

[tcreegan]

call police

as a result of some very fishy unethical things I saw happening.

Today he threatened to use deadly force on me if I tried to leave the store with my router

my wife and I don't feel safe around him, as he carries a (licensed) gun most of the time.


Have you talked to the police? You might need a restraining order more than a BK right now.....

Worried,

Tom in Colo

[businessman]

Yeah, I've talked with the police. They say I can get a restraining order if I need one. I'm wondering who I should talk to about receiving service about a civil lawsuit without him knowing where I live. If he's going to sue, I don't want him to win a default judgement just because I wasn't aware that he sued me. Thoughts?

[dumpinmydebt]

Yeah, I've talked with the police. They say I can get a restraining order if I need one. I'm wondering who I should talk to about receiving service about a civil lawsuit without him knowing where I live. If he's going to sue, I don't want him to win a default judgement just because I wasn't aware that he sued me. Thoughts?

That's tricky. You could always check your local courts (where he would file the suit) websites periodically to see if anything has been filed. I'd talk to them about it as well.

I understand your concern though.

I've been watching some lawsuit activity by a company that's suing my husband. I've seen suits being delayed for many, many months because they can't locate the person being sued.

[businessman]

My next question would be: If he's suing me to assets pertaining to the business (the equipment that I own and have receipts for that I took with me), then can he sue me for that post-bankruptcy?