Restructure
60%
lower daily payment
Equipment Lease Restructure
Restructure equipment finance — keep the gear, fix the payment
Equipment leases, EFAs, and equipment loans across QSR, transportation, manufacturing, construction, and medical. Modifications, surrenders, deficiency negotiation, and personal guarantee defense.
EFA
equipment finance agreements
LEASE
operating & capital
$15K+
typical case size
PG
guarantor defense
THE PROBLEM
Equipment lessors repossess fast
EQUIPMENT RESTRUCTURE
$340K EFA
Modified payment · gear retained
$340K equipment finance agreement · payment modified · gear retained.
30 days
Typical window from first missed payment to self-help repossession in commercial leases.
40–60%
Common auction recovery on used equipment vs. its book balance. The deficiency follows the borrower.
Equipment finance defaults move faster than other commercial debt. Lessors have UCC-1 filings, repossession rights, and (often) self-help remedies — they can show up at your dock with a tow truck on day 31.
After repossession, the lessor sells the equipment at auction (typically below replacement cost), then sues you for the deficiency plus fees. You lose the operating asset and end up with the debt anyway.
The right play is to engage before repossession: modify, surrender voluntarily on negotiated terms, or restructure the deficiency in advance. Lessors are economically rational — they'd rather hold a paying borrower than a piece of used machinery they have to liquidate.
We work the entire equipment finance stack: true leases, capital leases, EFAs, and equipment loans. The contract type matters because it changes what the lessor can claim, what tax treatment applies, and what defenses are available against a deficiency suit. Most operators don't even know which one they signed.
01
Pre-default modification
Modifications are routine before the first missed payment. After repo, you're defending a deficiency suit instead.
02
EFA vs. true lease
The contract type changes everything — UCC treatment, tax, deficiency math, defenses. Most operators don't know which they signed.
03
Commercial reasonableness
After repo, deficiency claims are highly defensible on disposition reasonableness, notice, and accounting under UCC Article 9.
04
Voluntary surrender
A negotiated voluntary surrender caps deficiency exposure better than self-help repo every time.
WHAT WE HANDLE
6 scenarios, opened up
01
Reduce monthly payments, extend terms, or skip-payment structures while retaining the equipment.
How we run it
- 01Audit contract type (EFA vs. lease)
- 02Build hardship + plan
- 03Negotiate payment / term modification
- 04Execute amended schedule
Typical outcome
Avg outcome: payment cut 30–50%, equipment retained
02
Negotiate a structured return that caps deficiency exposure and avoids repossession costs.
How we run it
- 01Confirm asset condition + market value
- 02Negotiate surrender terms (no deficiency / capped)
- 03Coordinate equipment return
- 04Document final close-out
Typical outcome
Avg outcome: deficiency waived or capped at surrender
03
Lump-sum settlement at end-of-lease or mid-term, often at substantial discount.
How we run it
- 01Confirm contract type + buyout language
- 02Identify mid-term or end-term buyout
- 03Negotiate lump-sum settlement
- 04Close and release UCC
Typical outcome
Avg outcome: buyout at 40–70% of remaining balance
04
Challenge commercial reasonableness of disposition; reduce or eliminate deficiency claims.
How we run it
- 01Audit disposition for commercial reasonableness
- 02Demand notice + accounting compliance
- 03Move for deficiency reduction or dismissal
- 04Settle on revised number
Typical outcome
Avg outcome: deficiency reduced 50–85% or eliminated
05
Defend or negotiate down personal guarantees attached to equipment financing.
How we run it
- 01Map PG scope across all equipment
- 02Identify defense + negotiation angles
- 03Negotiate cap or release
- 04Document PG resolution
Typical outcome
Avg outcome: PGs capped or released as part of workout
06
Coordinate across multiple lessors when fleet or kitchen-line financing is distressed.
How we run it
- 01Inventory entire fleet financing
- 02Triage keepers vs. surrenders
- 03Coordinate across multiple lessors
- 04Execute portfolio plan
Typical outcome
Avg outcome: critical assets retained, others surrendered cleanly
“
FROM THE DESK
Equipment lessors will repossess in 31 days and sue you for the deficiency in 90. The same lessor will modify your lease in 14 if you call before that first missed payment. Timing is the entire game.
Our process
From
same-day
intake
to
closeout
Most cases hit resolution between months 3 and 6. We move on day one because deadlines don't wait.
01
30-min confidential call. We pull contracts, balances, and current status of each creditor.
Document review · Leverage map · Triage urgency assessment
02
Letter of engagement on file. We open communication with creditors on your behalf, work to pause aggressive collection actions, and help protect your bank accounts.
Engagement letter · Docket monitoring · Bank protection
03
Our team — and an affiliated attorney from our network when needed — handles every creditor communication. We document everything; you stop fielding calls.
Settlement memos · Counter-offers · Discovery if litigated
04
Signed settlement agreements, lien releases where applicable, and a clean path forward for the rebuild.
Final agreements · Lien releases · Closeout package
“Delancey Street walked us through every step. The settlement saved the business — and our credit.”
WHERE WE WORK
Equipment Lease Restructure cases in all 50 states
FAQ
Common questions
Can the lessor really repossess that fast?
Yes. Most equipment finance contracts include self-help repossession rights, and many states permit it without judicial process for commercial collateral. The 30-day default-to-repo window is real. Engage before that clock runs.
I need the equipment to operate. Now what?
Then we're negotiating to keep it. Lessors prefer paid borrowers to repossessed assets — the auction recovery is bad for everyone. We routinely negotiate modifications that keep the equipment in your operation.
What about deficiency after repossession?
Deficiency claims after disposition are very defensible — commercial reasonableness, disposition notice, and accounting are all common challenge points. We often eliminate or substantially reduce post-repo deficiency demands.
I personally guaranteed the lease. Bad?
Standard. PGs on equipment leases are routine and enforceable, but scope and triggers vary. We defend or negotiate them as part of the workout.
Multiple pieces, multiple lessors — coordinated workout?
Yes — common in restaurant and trucking cases. We coordinate across lessors to optimize which assets stay, which surrender, and which buy out, in a single coherent plan.
RESOURCES
Read more on equipment lease restructure
Guide
Negotiation flow
1 Demand
2 Counter
3 Term sheet
4 Settled
How does business debt settlement work?
Step-by-step explanation of the negotiation, timeline, and what changes for your business.
Read article
Defense
VS
Fight
$0
if you win
When to settle vs. when to fight
Not every creditor responds to negotiation. Here's how to read the situation.
Read article
Strategy
Avg. payment reduction
54%
Best business debt settlement companies (2026)
How we compare on track record, pricing, and outcomes.
Read article
GET IN TOUCH
Talk to a strategist about your equipment lease restructure case
Free initial review. We'll look at your contracts, the creditor mix, and what's actually triggerable in the next 30 days. No commitment, no sales pitch — just a real read on your situation.
Direct line
212-210-1851
Picked up by an actual case manager — no phone tree.
Email
info@delanceystreet.com
Replies within 4 business hours, 24/7 for COJ emergencies.
Confidential intake
Encrypted document upload
For uploading contracts, UCC notices, and bank statements.
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