Legal Question in Credit and Debt Law in California

Even though they will recover the equipment and you will no longer have the use thereof, you are on the hook for the balance of the payments under the lease. Or, at least that is what they are going to sue you for. The defense of surrendering the equipment really doesn't work in the case of a commercial lease. It is not like a loan where they would have to deduct from the loan balance the amount they recover upon liquidation of the property. Remember that at the end of a lease, they get the property back anyway.

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