I own an SCorp. I m currently leasing business related equipment. If I close the business and file for bankruptcy can I keep the equipment?
- babyboomer1001Lv 72 months ago
Obviously, that would be theft. You know you are leasing the equipment. That means you DO NOT own it. This isn't rocket science. Steal it and there will be serious felony charges.Source(s): Certified Paralegal, with 25+ years' experience.
- Wayne ZLv 72 months ago
No, you can not keep the equipment.
Assuming that you have an Operating Lease, it belongs to the leasing company. You are just renting it.
When you signed the lease, did you sign a Personal Guarantee? If so, the leasing company can pursue you for the payments even if you return the equipment and even if the S-Corp files bankruptcy.However, these are all questions for your attorney and not some random strangers on a message board. He or she can look over your equipment lease and see what options, if any, that you have.
- daniel gLv 72 months ago
Of course not, you don't own the equipment, it belongs to the corporation and likely get sold off at auction. Not one single thing of the corporation is yours.
- JudyLv 72 months ago