What to do if I used my personal credit card to purchase some equipment for my company and now they’re filing Chapter 11?

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What to do if I used my personal credit card to purchase some equipment for my company and now they’re filing Chapter 11?

I know I can’t get the money back but can I take the equipment with me? Especially, considering that I can show where I purchased it and the company can not show that they paid me back?

Asked on October 29, 2012 under Bankruptcy Law, Tennessee

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you actually purchased the equipment for your company on your own credit car and you have not been reimbursed for such, I would simply take the item as your own since you paid for them. However, in a Chapter 11 bankruptcy the business entity is in the process of reorganization and not liquidation. Perhaps entering into a written contract with your employer for the sale of the equipment where you take a security interest in such per a UCC filing is an option for you.

I suggest that you consult with a business attorney further about your matter.


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