Read the leases. What happens if you break the lease? What are the damages / penalty? If you want to continue to use the equipment, then you're going to have to pay. But if you are quitting business, then consider what would be the down-side of giving back the equipment.
Jeff Merrick, Oregon Trial Attorney
Injury & Employment Law
The above is not legal advice. I cannot give you sound advice without knowing more information. It is intended to raise some issues for you to discuss with your own lawyer.
There are almost always more than two options. Since you're considering Chapter 13,did you personally guaranteed the medical equipment? What are your intentions with the business - continue or not? Are you looking to cancel all of the leases? What's the lease term?
As my colleague noted, you should have an attorney review the terms of the leases. Base your action on what your options might be therein. Talk to the leasing company to see if more favorable rates can be obtained - they'll probably want to retain you as a customer when it's time or renewal. If direct negotiations fail, other actions might be considered, such as breaking the lease or bankruptcy options.
Not only it is unlikely that the other company's attorney can simply "get you out" of the other leases, interfering in a third party's contractual relationship like that can expose them to civil liability for tortuous interference with business relationships/contractual relations. They're either lying or have no idea what they're talking about.
Michael J. Duffy, Esq.
Duffy Law, LLC
1500 Market Street
12th Floor, East Tower
Philadelphia, Pennsylvania 19102
52 Berlin Rd.
Cherry Hill, NJ 08034
Please note: The information provided here is for general informational purposes only and should not be construed as legal advice or legal opinion on specific facts or circumstances. You should consult an experienced attorney concerning your particular factual situation and any specific legal questions you may have. No attorney-client relationship is created merely through the exchange of information via this web site. Michael J. Duffy will not undertake representation of a client without the client first signing a written retainer and representation agreement.
As the previous two attorneys noted, you have options. But to really know what those options are and what the best course of action would be, you need to understand your leases and the circumstances defined within them.
You would be well advised to consult with an attorney for an initial confidential assessment of your situation.
Any tax advice included in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed on the taxpayer by any governmental taxing authority or agency.
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