Legal Question in Business Law in Utah

breaking a lease

I signed a 5 year contract for a copy machine to use in our business. The contract is with Lanier, A Ricoh Company. The monthly payments are about $850.00 and we still have about 3 years on our lease or approximately $30,000 owing. Continuing to pay such a high lease will make it hard to stay in business. What are our options? Should we try to settle? The contact person I have been working with said we could settle for $11,500 but that is quite steep. Can we declare bankruptcy on this one loan? Can we break the lease?

Love to Learn, INC

Salem, UT 84653


Asked on 12/30/08, 5:13 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: breaking a lease

The terms of the lease will govern your options. You could file bankruptcy, but that may be a radical option for a relatively small debt, unless you have other debts you want to dispose of at the same time. Your best course of action would be to confer with an attorney who can evaluate all of your debts and related facts.

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Answered on 1/02/09, 11:19 am


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