Business failed, file for bankruptcy

Ask a Lawyer

Ask a Lawyer

Question

Country: Canada State: British Columbia My sole proprietorship business has failed, leaving me severely in debt and forcing my to file for bankruptcy. I need to get a job and move because there is no work in the small town that I live in. My only solution to get money to move is to sell the trailer that I own. We have a buyer but it turns out the owner of the restaurant I was running put a lean against the trailer for $22,000. (Trailer is selling for $16,000 and I owed $5,000 to clear the mortgage.) Meaning I'd get nothing. My question is the trailer is solely in my name, I have signed a contract with the owner of the restaurant saying I owe him $5,000 and have secured that debt with the equity in my trailer. The remainder of the $22,000 is debt from my boyfriend, loans that he made and I new nothing about. I feel the lean should only be for the $5,000 I signed for. Can he legally have a lean against my equity for loans I never made? Or can I fight the lean, I have no problem paying the $5,000 I owe but I need the remaunder to be able to move. As it stands right now the people who bought my trailer take possession in 3 days, so I will be homeless with an infant and have absolutely no money if his leans stand, please tell me if there is anything I can do.

Answer

If you did not sign and agree tot he lien it normally would not be valid…