I have a query - one of our clients was sub contractor to a company. He was to buy the company trailers and the company would continue to provide work. The Client got a loan for $100,000 and also a letter from the Company to state he was buying their trailers.
When he got the money through, he didn't pay out all the trailers and still owes $33,000, instead he paid out the creditors that were owed funds - the trailers are still in the company's name. If this client declares bankruptcy, can the financier of the loan repossess the trailers? The Financier never checked or put in place any safe guards to ensure the trailers were purchased.
When he got the money through, he didn't pay out all the trailers and still owes $33,000, instead he paid out the creditors that were owed funds - the trailers are still in the company's name. If this client declares bankruptcy, can the financier of the loan repossess the trailers? The Financier never checked or put in place any safe guards to ensure the trailers were purchased.
