Legal Question in Bankruptcy in Utah
Repossessing Business Assets
A dentist went bankrupt and closed his office. The landlord retook possession of the space and also all the equipment and personal property. There is an other creditor who claim the equipment is theirs not the landlords. Without focusing on the issue of who would win the final battle (My understanding is that the other creditor will because they have a perfected security interest but not a landlord waiver). My question is what exactly must be done by the creditor to get their equipment if the landlord refuses to give it to them. The reason I need to know is that I leased the space from the landlord under the understanding that it included the equipment. I did not go into this situation blind or ignorant. I knew this may happen. I am prepared to negotiate a purchase with the creditor or to get new stuff. But I need to know what steps the creditor must take so that I can plan my negotiation strategy and also time acquisition of replacement equipment should the creditor be unwilling to sell. The creditor is threatening to come get it next week. They have not given any court orders or approvals and the landlord says he/we can simply refuse to give them the stuff. When can they get their stuff even if we refuse. What do they have to do
1 Answer from Attorneys
Re: Repossessing Business Assets
If the landlord refuses to recognize the creditor's perfected security interest, the creditor will have to file a lawsuit to get a court order.
From a strategic point of view, you may want to get an idea of the auction or quick sale value of the equipment. Make an offer to the creditor, contingent on the landlord releasing his interest in the equipment to you. Then approach the landlord with a settlement offer, since he will be in breach of his lease with you if he cannot deliver the equipment.
However, if the former dentist is still in bankruptcy, you will have to get permission from the bankruptcy court to acquire the equipment, unless the creditor has already gotten a waiver from the court or trustee.
Related Questions & Answers
-
Chp 13 question I am currently in a chp 13 I have been served papers for small... Asked 1/31/05, 8:31 pm in United States Utah Bankruptcy Law
-
Marriage and bankruptcy If my husband declares bankruptcy, what will that do to my... Asked 1/31/05, 2:06 pm in United States Utah Bankruptcy Law
-
Buying real estate before a bankruptcy My fiancee and I are getting married in 2... Asked 12/25/04, 10:21 am in United States Utah Bankruptcy Law
-
How long til i can file a 2nd bankruptcy how long after filing a chaper 7 can i file... Asked 12/20/04, 4:37 pm in United States Utah Bankruptcy Law