defaulted on equipment lease, what do i do with the equipment?

February 13th, 2010

i recently closed my business and had a leased copier, which had gone in to default with the leasing company, and into collections with the finance company. my lawyer advised me since i have no assets they could not collect anything from me, even if they file a lawsuit, but my main concern right now is what do i do with the copier? who do i contact to come get it? the original equipment supplier, the finance company, or the collection agency? it belongs to someone, and i do not know where to start.

As long as you did not sign a personal guarantee, you’re no longer liable. You should read the lease agreement and see what your obligations are in case of default. Make sure you don’t give it away to the wrong party. You could get into trouble for disposing of goods which are not yours. If in doubt, ask your lawyer. If he’s going to charge you, ask the lease company.

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One Response to “defaulted on equipment lease, what do i do with the equipment?”

  1. Comment by Sandy
    February 13th, 2010

    As long as you did not sign a personal guarantee, you’re no longer liable. You should read the lease agreement and see what your obligations are in case of default. Make sure you don’t give it away to the wrong party. You could get into trouble for disposing of goods which are not yours. If in doubt, ask your lawyer. If he’s going to charge you, ask the lease company.
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