VIC Sale of assets under finance

[Garry All]

i have sold a truck and machinery why they were under finance about 12 months ago,the buyer did not do a finance check, the money was put into my account, I have been paying the finance for 12 months still now, and have 3 yrs to go.
I find myself struggling week to week lately to keep up the payments.
The items are financed in my buisness name, not my personal name, my question is, can I declare myself bankrupt to get this off my back.??
What will the proceed be by the finance Company towards me to settle the outstanding debt, seeing I no longer have the items as security or the money to pay them back..
Will they chase the buyer to repossess the items.???
Will I be taken to court, even know I'm
Bankrupt..???
Cheers ..

 

[Rob Legat - SBPL]

Without all the details it’s hard to say. So, here are some general observations which may apply:
- Unless the truck and machinery were sold in the course of a business of selling those types of items (e.g. by a motor dealer), then the lender will be able to track down the items and repossess them. You’ll then have a claim against you by the person who you sold the items to.

- If the ‘business’ is a company, the debt can be pursued against them. Failure to pay may eventually lead to the company being wound up.

- Also, If the business is a company and you go bankrupt, you will be unable to be a director during the course of your bankruptcy and the bankruptcy trustee will gain control of any shares you own (and therefore possibly the control of the company).