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Consequences of Selling Leased Equipment, and Bankruptcy

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  • 10-20-2006, 01:11 AM
    prelude86
    Consequences of Selling Leased Equipment, and Bankruptcy
    I need to get some help getting out of debt. I've run my own lawn business for almost six years and and about two years ago sold the clients and tried to start another company. The second company is a landscaping company and it lost too much money. Now, I have equipment leases, cash flow loans and equipment loans that I owe and can't afford. My total business expenses are about $4000 a month, and my income is only $1500

    About fifteen grand worth of equipment I used to run the landscape business, I've sold to use to pay debt services and all my other expenses. Now I have no money in the bank, about $1500 in recievables and am two months late on the equipment loans/ leases. State is MO

    Setting up a meeting with a bankruptcy attourney on the 25th, but like to find out what kind of obstacles I'm going to have to deal with.

    Also, I own a home worth 70k market value and ow $75k on it. I have a truck loan of about 20k that I can't afford anymore, still have four years left on the note. I'm current on my home and truck payements right now but won't be for long. Oh, and I have about $1500 in CC debts.

    I can pay back some money slowly over time, but am afraid I'll be arrested or something. Anyone know if I'm going to jail or will have to pay back some money?
    Ryan
  • 10-21-2006, 11:30 PM
    Mr. Knowitall
    Re: Nasty bankruptcy, sold leased equipment = $15k HAVE QUESTIONS
    The sale of leased assets could cause you some real problems, so it's a good thing that you're consulting a lawyer.
  • 01-16-2007, 08:11 PM
    letsflyak
    Re: Consequences of Selling Leased Equipment, and Bankruptcy
    well besides contacting a lawyer, anyone else have anything to add to this? if you have a personal guarantee on the equipment and its signed up under a sole proprietor, if the court discharges the debt, then wouldn't he no longer be liable for any of the debt?
  • 01-16-2007, 09:11 PM
    jk
    Re: Consequences of Selling Leased Equipment, and Bankruptcy
    Quote:

    Quoting letsflyak
    View Post
    well besides contacting a lawyer, anyone else have anything to add to this? if you have a personal guarantee on the equipment and its signed up under a sole proprietor, if the court discharges the debt, then wouldn't he no longer be liable for any of the debt?

    the problem is the OP sold LEASED equipment. NO OWNERSHIP INTEREST in leased equipment which means OP is guilty of conversion because they did sell the stuff. This may very well remove the possibility of discharging those debts via bankruptcy as well as the possible criminal implications to deal with.

    OP REALLY needs to get an attorney, NOW!!
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