Many small businesses borrow to obtain business equipment, others lease their equipment, although the “lease” may in fact be a disguised financing agreement. In both cases, liability can extend to the business or the business owners even if the equipment is repossessed. Of course, repossession of the equipment often means that the business can no longer operate, so we always strive to help businesses maintain their equipment throughout debt settlement. Often the equipment is large and expensive to move and the value is not what is used to be. For these reasons, many lenders do not want to repossess business equipment and therefore they are willing to negotiate.
In bankruptcy, the borrower can often have the debt amount reduced to the fair market value of the equipment. In today’s economic climate, this can be a substantial reduction of debt, so lenders are often willing to negotiate if they think the borrower may be forced to file bankruptcy. The Butler Law Office can explain the rights of the business and the business owners regarding business equipment on loan or on lease. Our experience negotiating with creditors can help you stay in business through this difficult economic time.
The Butler Law Office has over thirty three years of experience and can help you make a debt settlement decision that will be best for you or your business!