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?

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  • 1 month 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.
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  • 1 month 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.

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  • 1 month 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.

    • Victor1 month agoReport

      Okay. Thanks for the response. So if I return the equipment and close the corp then I'm not liable in any way?

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  • Judy
    Lv 7
    1 month ago

    no......................................

    • Victor1 month agoReport

      Thanks for the response. Are you a corporate lawyer or something along those lines? Would bankruptcy at least eliminate the debt? I am liable for repaying the debt in any way? I can of course return the equipment. 

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