truck leasee

August 27th, 2009 by Questions

I lease a truck (commercial 5 ton) and due to injury I haven`t been able to drive it or make payments for 3 months. Can I go bankrupt as an owner/operator small business seperate from all of my other personal debts or do I have to go fully bankrupt to deal with the truck issue. I have tried to sell or have someone take over the lease but in this economic environment there is no interest. I am faltering under my other debt load as it is but the additional cost of returning this truck and all related charges will double my debtload and as it is everything else will start to default soon. As I am not working or bringing in any other money.

Posted from: British Columbia
will double my debtload and as it is everything else will start to default soon. As I am not working or bringing in any other money.

Posted from: British Columbia

Questions

One Response to “truck leasee”


August 28, 2009 at 12:40 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

If you are operating a proprietorship (i.e. simply doing business under your own name) then you are not able to separate your business from your personal affairs as the business is not a separate legal entity. As a result you would not be able to file a bankruptcy on simply the business component of your affairs.

However, if you have a separate company set up (limited co, corporation etc.) then you can file for bankruptcy separately, as long as you have not signed any personal guarantee’s on the truck loan.

So the best thing for you to do is to contact a local trustee and review exactly how your have your business set up and all the related debts you are dealing with and they will be in a better position to advise you.

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