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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117460
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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we have a machinery biz, for the past 12months it has gone

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we have a machinery biz, for the past 12months it has gone down the tube,,, bills can tbe paid, nor labor, we have sold numerous pieces @ losses to stay a float, and paid bills, but cant maintian it now,,,
all of the pieces were on term notes, ucc's files,,, several of the items are no longer here, but many still are,, we are pretty sure of being around 150k in the hole,, and owe 600k, biz and personal,, i have personally guarteed the notes as pres of company, they have a blanket on my assets,

i no , the biz, and my personal assets will all be gone,,,,if we completly default, but my question is,,, what about the missing ucc'ed items,, they had knowledge of us dumping items, in the hopes of makeing bigger better deals and comming out,,,
what do we do,,, file totall liqudation? or just default and let them work it out..
In order to properly dispose of the equipment with the UCC liens would have had to have been released and if you prove they knew you were disposing of them and they did not stop you then you would arguably have their tacit release of the liens. At this point you are describing the definition of "insolvency" and you are going to need an attorney, because this is a company, and they will have to place you into bankruptcy (Chapter 11 reorganization first if possible). Also, because you have personal guarantees, you would also likely have to consider personal bankruptcy along with the company bankruptcy to get out from under the debts. This is why Chapter 11 reorganization or negotiation with the creditors may be your best first move.

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