Legal Question in Credit and Debt Law in New Jersey

Defaulting on a Canon Copier Lease

Hello,

I am 12 months into a 36 month lease of a Canon Copier. Our business went under and we no longer need the machine and we're paying $289/month for the next 2 yrs. We are in financial hardship and cannot afford to keep this machine but Canon said they will reposess it and take us to court in New Jersey and we must appear and pay attorney fees, court costs and the cost of the machine. They said we cannot sell it but we can find another person to lease it and pay $500 for Canon to do the contract. We have not found anyone to take over the lease and due to other all the other financial stresses of starting over I really need to find out if this is our only option. What can they do to us if we cannot pay and do we really have to fly to New Jersey? Please help me, I don't know what to do.

Sincerely, Stacy


Asked on 7/20/06, 3:03 pm

2 Answers from Attorneys

James Grissom Law Office of James P. Grissom

Re: Defaulting on a Canon Copier Lease

In your lease agreement, you probably signed a "choice of forum" clause which said all actions under the lease must be in New Jersey - so that is where you would have to defend any claims under the lease. They can easily get a judgment against you in NJ because you won't likely go to the judgment hearing. Make sure that you are properly served with a copy of the lawsuit and that you properly enter an appearance and get copies of all hearing date. Even then these dates are often moved without notice to either party; so even if you went, the hearing might not be held. Sometimes when they won't negotiate with you, they will negotiate with a lawyer. Other times, they will take their judgment in NJ and bring it to TX for enforcement. If you have appeared in NJ and kept copies of all your documents from the Court, you might have a snowball's chance.

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Answered on 7/20/06, 3:20 pm
Robert Davies The Davies Law Firm, P.A.

Re: Defaulting on a Canon Copier Lease

Well, I read the reply from the Texas lawyer. I think you may do a good deal better than just getting stuck with a large judgment. I think I could help you a good deal with this.

If you would like, give me a call; I am in northern New Jersey. The telephone consultation will be free. I would be happy to help you out.

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

Disclaimer: you can not rely on the advice of an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.

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Answered on 7/20/06, 6:01 pm


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