Will my son have to “Fire-sale” his inventory of used equipment?
My son makes his living buying, cleaning & repairing, then selling & delivering used telecom equipment. Much of the equipment he gets at no cost but he must sign a document stating that the equipment will be disposed of in an environmentally safe manner. He then cleans and repairs the equipment as needed and sells it to contractors and end users as the demand for the items come along. This requires him to carry a fairly large inventory of various used equipment to meet the specific needs when the order comes in. If he was forced to “fire-sale” this inventory it would fetch little value on the market, would not be disposed of in an environmentally safe manner, and he would have nothing to repair and sell to make a living. Would he be allowed to keep this inventory and go on about his business if he was to declare bankruptcy?
I think he would be able to keep the equipment. The fact that the equipment is worth little and would have to be disposed of in an environmentally safe manner would be very persuasive to the trustee to allow your son to keep his equipment since that responsibility would fall to the trustee if he was to seize your son’s equipment.
He should ask the trustee about this.