We just shut down our shop and had surrendered the equipment back to the leasing company. They have sold have of the equipment on the lease but not all of it. They are wanting to set up a payment plan for the balance of the total lease before all equipment is sold. Can they do this? Is there anything that I can do to prolong this?
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Are you going to file BK? -
Technically, they probably can do that.
If you're not filing BK (which if you're here on this forum, you probably are), AND you personally signed the lease (either as yourself or a personal guarantee), you are on the hook for the remaining lease payments.
If you're filing, you will include the lease in your creditors which will eliminate your liability.Moving ahead with my fresh start!
Ch 7 Discharge: 12/14/2009
TT Report of No Dist! 03/31/2010
Case CLOSED!!!: 04/28/2010
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Can they do this? Most likely yes.
What do you do? Either pay it, ignore it, or file bk.All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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Yes, the lease is a contract, and you are obligated by its terms. 10 times out of 10, one of those terms will hold the leasee (the person who leased the equipment), responsible for the balance of the lease regardless of how they dispose of the equipment. So, you have 3 choices.
1. Do nothing, and they will sue you (leasing companies are quick to sue)
2. Pay them (you mentioned buying time, so going on a small payment plan would do that).
3. File BK.Comment
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