Conversion of Leased Property
My question involves bankruptcy in the state of: New York
I've recently sold some equipment that was leased that had a $1 buyout option over 6 years (I am in the 2nd year). I didn't sell all of the items, only about 40% of it, which amounted to about $20,000. I used the funds to acquire a different piece of equipment which is imperative to my business for the duration of the lease term. I am current in my payments and will be for the entire duration of the lease. I also have enough cash reserve to be able to fully pay off this item if need be but that would impact my cash flow which is why I sold off the original equipment in the first place to acquire the alternative replacement.
The main issue is that I know that I don't have ownership of the items sold until I take title at the end of the lease duration, so if the the lessor did find out, I would be in breach of the lease contract and potentially guilty of conversion. I realize that even my act of staying current on payments and/or being able to pay this off in its entirety doesn't absolve me from the original act of mine which is in violation of the lease contract which can lead to potentially further civil action.
I'm wondering the best course of action here. Can I ride out the payments as intended for the remainder of the 4 years, or take a different course of action?