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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3775
Experience:  Solicitors 2 years plus PQE
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Good Afternoon, I have sold assets which have finance on them. The

Resolved Question:

Good Afternoon,
I have sold assets which have finance on them.
The finance company has found out.
They have reported it to the police and SFO.
I have offered 2 different repayment methods, and lots of collateral.
What should i expect to happen next?
Thank you
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Were you aware that you were not allowed to sell the assets?
What is the value of the assets?
Did you in any way try and conceal the sale?
Kind regards
AJ
Customer: replied 3 years ago.

Hello AJ

I was aware i was not to sell the assets, however it was our intention to repay the amounts before it was discovered.

The total value is £679907.12.

We have £331981 available to pay today, and £900,000 worth of collateral to use for the balance.

I did not conceal the sale, it was a huge agricultural farm sale, well published in the press.

We feel they are being unrealistic in not wanting to discuss a repayment schedule.

AK

Expert:  Alex J. replied 3 years ago.
Hi,
Thank you.
If you did not deliberately conceal the sale and always intended to repay then this is not fraud or theft. Fraud is very hard to prove and theft requires a dishonest intention. I suspect, as you did not try and conceal this and only intended to repay the money, the police are unlikely to pursue this.
You are in breach of contract however and the company are probably entitled to rescind the whole agreement now and demand immediate repayment.
What have they said to you? That they are waiting the outcome of a police investigation?
Kind regards
AJ
Customer: replied 3 years ago.

This was the email I received this morning.

I will formally respond to your email via our solicitors as your proposal is not acceptable. The sale of our assets ‘out of trust’ will be reported to the appropriate authorities and legal action taken.

.

Can the finance company repossess the machinery from the people who bought it from me?

Expert:  Alex J. replied 3 years ago.
Hi,
Thank you.
I am not convinced that the authorities will do anything as this is simply a breach of contract.
That said as you have sold the property subject to the finance you most likely in breach. They are reserving their position to take legal advice. Once the solicitor has this you may find it easier to negotiate a settlement.
Potentially yes they could get the equipment back if they can prove that the buyer new the machinery was subject to finance and you did not have title to sell. However they are a finance company and more interested in getting their money back.
Is the collateral property?
Kind regards
AJ
Customer: replied 3 years ago.

The collateral is land. Prime arable land.

The buyers where unaware of finance on the machinery, as where the auction house that sold it.

I agree that they theoretically should be more interested in getting there money back, as the value of the machinery sold is less than the amount owing.

Expert:  Alex J. replied 3 years ago.
Hi,
Thank you.
You need to make clear in your repayment plan that you are prepared to offer a legal charge over the land and that you propose a repayment plan based on monthly payments.
In all likelihood they will probably only accept it, if they get their money more quickly than they other wise would have had you not breached the contract.
I would put a marker out and say you are making every effort to co operate them but deny any criminal liability as there has been no attempt to conceal or mis appropriate any property.
I would not however admit anything until you have engaged a solicitor that will negotiate on your behalf. Until you are being formally advised they will probably feel like they can bully you.
I look forward to hearing from you.
Kind regards
AJ
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