Legal Question in Business Law in Utah

Going Out of Business and Taking My Money

I purchased an ATV rental agreement for $2006 in May 2003, Which allowed me to have 32 uses of the equipment, I have since used 9 uses, and now the owner of the business say he's going out of business and must liquidate all of the equipment prior to refunding my unused ATV rentals. He initially said he would send out a letter explaining the situation and when we would receive our money. It has been two weeks and I am worried he is going to file for bankruptcy. I spoke to him yesterday and asked for a letter promising repayment, he said he was working on the letters and it could take up to 45 days for repayment. I told him I wanted it sooner than that and I was considering taking him to court. And he said if I did he would go bankrupt and I wouldn't receive any of my money. What should I do? Should I believe he is in the process of liquidating and going to fully repay me? Or do you think he is trying to buy time so he can file bankruptcy? If he goes bankrupt can I still get my money or am I SCREWED?


Asked on 7/11/03, 5:42 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Going Out of Business and Taking My Money

You may loose your money. Without reading the agreements and knowing the seller's financial and company information, there is no sure way to tell. Your risk is that he will sell the equipment and then skim off as much cash as he can, paying you as little as possible. I would tell the guy to take out bankruptcy, then the trustee will try to get funds for you and others like you. There is no reason he should escape without a mark on his credit, and the bankrupcty will be a reminder of his misdeeds. If you do not buy into his threats of bankruptcy, maybe he will pay you first.

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Answered on 7/12/03, 10:46 am


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