Legal Question in Bankruptcy in Illinois

Tenant filed chapter 7, his bank repossessed my equipment

I leased some farm equipment to my tenant in Feb.1997 on a 4 yr. contract with option to purchase at end of 4th yr. Tenant did not make full payment at end of contract but said he intended to pay the rest of the money. In the meantime, he has filed chapter 7 and his creditors have started repo'ing equipment, some of it being mine.

I have talked to the bankruptcy trustee and he told me I could buy back my equipment for X amount of dollars. I won't include figures, I don't feel they are relevant here.

Since this was only a lease and tenant defaulted on purchase option, how can my equipment be sold as his asset, or can I get back what I already own without buying it back?

If it matters, the lease contract expired before the date of his bankruptcy filing.


Asked on 9/11/01, 2:45 pm

1 Answer from Attorneys
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: Tenant filed chapter 7, his bank repossessed my equipment

Your rights in this situation will be determined by the documents, if any, signed to reflect the lease. It is too complex to answer here. You should consult with an attorney to discuss the facts in more detail and allow the attorney to review all the documents and other filings relating to the lease transaction. I would be happy to help you if you are near metropolitan Chicago. Larry Stein, (630) 221-1755.

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Answered on 10/26/01, 3:39 pm


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