Expert: Finance Guy - 3/3/2009

Question
I leased equipment and I am finding that it is not making me the money I hoped it would and I can't keep up the payments which are $3000/month.  The lease is for 60 months and I have only paid for 7 months.  With the downturn in the economy, I can't afford the lease.
The lease says I cannot sublease it.  What options do I have?
Thank you very much for any help you can give.
Debbie

Answer
I am sorry to hear about your situation.

Usually a lease is non-cancellable.

Your lease probably says that you can not sub-lease without written authorization and approval.

First talk to your leasing company and see if they will cooperate.

They probably will not.

If not, do ANYTHING you can to make the payments.

If you find someone to sub-lease the unit, do it.

However, understand that you will still be responsible for the any damage or repairs, as well as whatever balance is uncollected from a third party.

Bankruptcy may be an option, but you will need to consult an attorney to determine if that is a viable option for you.