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Hi,
I have a business and my lease is for 5 yrs. I have 4 more years to go. The business is not doing well. Im closing the doors. Its not making enough to cover my bills at all. I asked the landlord for rent relief many times and they said NO. I asked them to let me out of my lease many times and they said NO. I owe them 16,000.00 back rent, cam and late fees. Their lawyer sent me a letter to pay the balance within 5 days or the eviction process will start. I called the lawyer up and asked if I borrow/get this money anyway I can and pay them the back rent will they terminate the reminder of the lease. She said she would discuss this with her clients. Haven heard anything thus far. Hope today. My question....I put 8,000.00 down at signing of lease. I know the last months rent I can use but am I still In-titled to the security and if they agree with my terms and I pay back rent {I will get it all documented} can they decide to go after me for the remainder of the lease? Another question is it wise for me to do this (Pay the back rent) or should I just list them in my bankruptcy at a later date.
I eventually have to file due to the rest of the bills this business has brought me...Credit cards etc. but that wont be until a later date. If they evict me and get a judgement when I go bankrupt can I still list them?
Thank you

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Submitted Tue, 03/03/2015 - 16:19

The simplest way for you to deal with the situation would be through the use of an experience bankruptcy attorney. I would really need more information to properly answer this question, such as was the business in LLC or corporation? Another possibility is you could've started the business as a DBA and have no legal entity such as a limited liability company or a corporation, which would protect you personally from such debts. If you do have a legal entity for your business such as an LLC or a corporation, the debts belong to that entity and not to you, unless you sign the lease being personally liable. I would really need to see the documentation of the lease and know if you have a legal entity for the business or is the business personally under your name to truly give you the answer you're looking for. It sounds to me as if you have obtained significant debt personally through credit cards and such and will be filing a Chapter 7 bankruptcy to discharge these debts. That would be my first recommendation. If you do have a legal entity for your business, then you should also be filing bankruptcy for the business to discharge the debts associated with the business. This is a particularly difficult situation due to the fact that a business is involved in the use of an experience bankruptcy attorney will be necessary, do not attempt to shop around by price, as the situation is much more complicated than your average Chapter 7 bankruptcy. You will also have to consider the equipment that is located at the facilities, if those are also rented you will have to deal with that situation once you close the business. If you can provide the information that I have requested, I can more completely answer these and any other questions you may have.



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