optimist
05-04-2009, 10:51 AM
I had a small business and leased several pieces of equipment from Sterling national bank with personal guarantee. All totalling about 150k. The equipment was repossessed.
If I don't file bankruptcy, what can I expect to happen from this company? How much can they sue me for? The total value? Is if possible they wont sue at all??
Help!
BigJohn
05-09-2009, 12:05 AM
Leases on equipment can be nasty. Was the lease a non-breakable lease?
The value of the lease is 150K. You probably had to make monthly payments for so many years which probably totals 300k (give or take). The equipment was repossessed and they probably claim it is now worth only 30K. I would say they might go after you for 270K plus interest. Hard to say.
StartingOver08
05-09-2009, 01:53 AM
I had a small business and leased several pieces of equipment from Sterling national bank with personal guarantee. All totalling about 150k. The equipment was repossessed.
If I don't file bankruptcy, what can I expect to happen from this company? How much can they sue me for? The total value? Is if possible they wont sue at all??
Help!
As BigJohn pointed out, the value of the leases is in the income that they generate for the bank/lessor. I think it would be highly unlikely for Sterling to ignore the debt, after all they have a written lease/contract with a personal guarantee by you. Once the equip is sold and the value is applied to the debt, then that debt becomes just like any other debt and can be collected by the OC or sold to a JDB for collections. The difference though, you have a written agreement which makes it that much easier in court for them to win. Look to your lease agreements to see the default provisions.
