If I cannot meet my payments on my leased capital equipment should I let?

Question

should I let the mortgage bankers take it back (I'm only 18 months into a 60 month lease)? Is it like a car repo where they sell the car and sue you for what's left (I personally signed)? I know the equipment won't cover what's owed

Answer 1

It would depend on the actual terms of the contract, but these contracts are usually comparable to a car repo... You would most likely be liable for the remaining value of the lease. The difference would be that you would be responsible for the ENTIRE remaining value of the lease... they would not be selling the equipment.

You will want to review the actual terms of the contract with your legal advisor, however.

Hope this helps!