Liquidating agents

You cannot sell these assets without the permission of the creditor; selling loan collateral before the loan is paid off is fraudulent and may even be punishable as a crime.You'll need to speak to the creditor about how to handle the collateral if you can't repay the debt—whether you will give it to the creditor as is or sell it with the creditor's permission, giving the proceeds to the creditor.

You will want to speak with the bank's collections department for more details.You'll want to try to get the secured creditor or lessor to settle for less than the amount you owe on the loan or lease; see Nolo's article Paying Off Debt When You Go Out of Business.Request refunds on your workers' compensation premiums and liability insurance premiums, if your policies' terms allow it.Keeping good records of your property and what happens to it will protect you in case a creditor later questions your liquidation of assets or in case you have to file for bankruptcy.You will also need this information for your tax returns.

Leave a Reply