breaking a lease
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breaking a lease
we are a LLC company and can not make the lease payments, what should we do.
should we file bankrucy on the business? or make contact with the landlord. can
he keep our products?
Asked on November 15, 2017 under Real Estate Law, Florida
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
A commercial landlord may be able to put a lien on or attach your products to secure payment of unpaid rent: they have to take certain legal steps to do this, but it is an option of theirs.
Generally, try to work matters out ("make contract," as you put it), but remember, the agreement must be voluntary: if you can't come to an agreement that works for you, don't sign anything.
IMPORTANT: If the business is an LLC, the business (not you personally) signed the lease, *and* you did not personally guaranty the lease or any obligations under it, you, as LLC owners, are NOT liable for the rent. In this case, don't sign anything taking on personal resonsibility for it, since right now, you are personally protected.
Bankruptcy is a complex issue, which depends on the specific facts; it is often a viable option, but you are advised to consult with a bankruptcy attorney to know if it is right for you.
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