Marlin Leasing Corp. Returned Equipment but Company Wanted to Collect Monthly Payment Until Fully Paid Mt. Laurel New Jersey

A very expensive medical equipment was leased for 5 years or 60 months with the intention of using it in the facility we owned.  We could not use the equipment in the facility because the health care provider does not want to issue a prescription.  Without a doctor's order we could not practice the use of the medical equipment.  

We were paying the monthly lease for almost a year without fail.  The lease contract is $543.50 a month and the actual payment based on the bill that was sent to us is $634.56.  

Early this year, we contacted Marlin informing them that there is no need for us to continue paying the unit because we will not be able to use it for the intended purpose.  We are financially burdened and the census in our facility is low.

After a few weeks, someone informed us that the medical equipment is going to be picked up.  Marlin Leasing sent me a bill for the month.  I did not pay that bill because they already got the equipment.

Collection calls started and they remind me that we have to pay even if the asset is in their possession.  We were told that if they were able to sell the equipment, the difference between what I owe and the sale price is still my responsibility.  

Meanwhile, I was advised to pay the leasing company each month until the lease is paid in full.  We are not talking of pocket change here.  The medical equipment costs over $25,000.00.  I was also advised that if my company will file for bankruptcy, I am still liable to pay the returned equipment because I am the guarantor/signor.  

It is not justifiable to pay for something you no longer have possession, the return of the equipment is not because of default since the payment was regularly sent to the leasing company until pick up.  

Now they informed us we are on default.  Today, they took the payment from my bank account which has not enough funds to cover $606.33.