Can I break this lease?

[LtlDoc]

What is the name of your state? California

Three years ago I entered into a lease with a equipment lease finance group for a four year period. At the end of the three year period I closed my business due to problems with the State of California and its tax system.

I contacted the lease company and told them that I was going out of business. They informed me to return the equipment to them. I have been receiving collection telephone calls since. I have sent them a letter requesting they stop calling pursuant to The Fair Debt Collection Practices Act, Section 805, paragraph (c). They have not yet received the letter.

My question is this: Since I complied with their request to return the equipment and have informed them that I am no longer in business, am I still bound by the original lease agreement? If so, is it possible to break this lease? What other options are open to me?

Your responses are greatly appreciated.

Kurt Gerber, MHA

 

[divgradcurl]

What is the name of your state? California

Three years ago I entered into a lease with a equipment lease finance group for a four year period. At the end of the three year period I closed my business due to problems with the State of California and its tax system.

I contacted the lease company and told them that I was going out of business. They informed me to return the equipment to them. I have been receiving collection telephone calls since. I have sent them a letter requesting they stop calling pursuant to The Fair Debt Collection Practices Act, Section 805, paragraph (c). They have not yet received the letter.

My question is this: Since I complied with their request to return the equipment and have informed them that I am no longer in business, am I still bound by the original lease agreement? If so, is it possible to break this lease? What other options are open to me?

Your responses are greatly appreciated.

Kurt Gerber, MHA

What kind of business did you have? Did you personally guarantee the lease? What did the lease itself say about breach?

 

[LtlDoc]

What kind of business did you have? Did you personally guarantee the lease? What did the lease itself say about breach?

I had a small retail store. The only guarantee was my signature. I don't remember what the lease stated, but I do remember being told that when I returned the equipment I would have no further responsibility.

Kurt

 

[divgradcurl]

I had a small retail store. The only guarantee was my signature. I don't remember what the lease stated, but I do remember being told that when I returned the equipment I would have no further responsibility.

Kurt

Without seeing the actual lease, it's impossible to advise you with complete accuracy, but based solely on what you've written, it sounds as if you are still personally obligated to the lease or for breach of the lease agreement.