Can I sell business equipment if I have an outstanding loan?
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It’s definitely a good idea to discuss this with your attorney. They can provide specific guidance based on the details of your case and ensure everything is handled correctly.
If the assets could be attached, it’s something that also might be brought up to the buyer. Full disclosure can prevent claims of misrepresentation later.
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I am doing an asset sale. I currently have just a loan on some of the equipment that has no title attached. I also am in litigation of a lawsuit that is 1.5 years in against the company. The asset sale template doesn’t allow me to edit these clauses. Is this info needed to be shared with purchaser?
I understand that navigating an asset sale while dealing with a lawsuit can be quite challenging. Have you already discussed the asset sale with the potential purchaser?
Yes
Are there any specific clauses in the asset sale template that you are particularly concerned about regarding the loan and the ongoing litigation?
Outstanding liabilities and outstanding suits.
Is there anything else the Lawyer should know before I connect you? Rest assured they’ll be able to help with outstanding liabilities.
But it wouldn’t affect the equipment necessarily, as they are moving the equipment to their LLC.
Hi there! My name is Liz and I’ve been an attorney for more than a decade, and I am here to assist with your legal concerns. So I can best help, is the equipment loan a lien on any of the assets?
It is just a generalized loan for equipment.
Understood. Will the loan be paid from the sale?
Yes
Does the lawsuit have any restraining orders or injunctions preventing sales?
Not that I am aware of. Is that something I should talk to the attorney?
It’s definitely a good idea to discuss this with your attorney. They can provide specific guidance based on the details of your case and ensure everything is handled correctly.
If the assets could be attached, it’s something that also might be brought up to the buyer. Full disclosure can prevent claims of misrepresentation later.
Okay, is this verbiage able to be changed on the forms to change this?
The forms cannot be directly edited. However, you could use it as a template, rather than a fill-in-the-blank, which would allow you to then make edits and add/remove clauses.
Okay, thank you.
You’re very welcome.
