Legal Question in Business Law in Georgia

Equipment Leases

My husband signed as personal guarantor on two 48 month leases totally $32,000 for business equipment with a neighbor. The neighbor also convinced my husband to invest $25,000 and become an employee/investor in his business. After 2 months, the neighbor ''fired'' my husband, but kept our $25,000 and never has paid the payments of $705 a month on the leases. The companies demanded payments from my husband for the leased equipment and we have paid over $15,000 and have another 24 months to pay. We will then have to pay the residual value of the equipment because the neighbor sold the leased equipment and pocketed the money he received. We filed a lawsuit that never got to the settlement stage before the neighbor filed bankruptcy. We have paid 2 attorneys over $5000 and we are still no where near a solution to our dilemma. Paying $705 a month for something we don't even have is an extreme hardship for us. This does not seem fair to me since this is a blatant case of fraud our neighbor has committed. The neighbor also used my husband's personal information to try and get a credit card issued to him over the Internet. Our fraud alert stopped that. The police did nothing about it. Does anyone have a solution for us? Thank you.


Asked on 9/30/05, 8:54 pm

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Equipment Leases

I cannot speak for the criminal side of your neighbor's actions, but it sounds like you will remain in a difficult position. You have a pretty obvious claim against the neighbor, but if he has properly filed bankruptcy and claimed you as a creditor, there is not much more that you can do. And you must continue to make the payments or else face a breach of contract claim.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Glenn M. Lyon, Esq

MacGregor Lyon, LLC

Promenade II

1230 Peachtree Street NE

Suite 1900

Atlanta Georgia 30309

Phone 404.942.3545

Fax 404.795.0993

[email protected]

www.MacGregorLyon.com

Read more
Answered on 10/01/05, 12:02 pm


Related Questions & Answers

More Business Law questions and answers in Georgia