Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your post.
I have a question:
1. Will the money from the landlord for the equipment pay off the loan to the lender?
no, it wont be enough as he is only giving us 10k, and we owe 12k in sales tax which we must pay
Ok. Thanks for the information.
As for the equipment, you CANNOT sell mortgaged property unless the lien will be paid in full. This is so because the lender owns the property until the lien is paid in full. In fact, this can be criminally prosecuted - - so it's not something you want to do, and it is not legal.
The only way to sell the equipment is if you can pay it off in full OR if you can get the lender to agree to release the equipment for the amount being paid. Also, all of the money you receive for the equipment would have to be paid to the lender.
As for the contract, IF two members of the LLC signed the loan agreement, then it is likely valid as there's likely a provision in the agreement that says these two people were duly authorized by the LLC to sign on its behalf. If the people that signed the agreement weren't authorized to sign for the LLC, then they could be looking at fraud charges as well. Also, it would be hard to claim that the members weren't authorized if the LLC has made payments on the loan, used the equipment, etc.