QUESTION
I have a lease where my business is, if I shut the doors for good can the lease place come after the land I own?
Asked on Jan 08th, 2015 on Bankruptcy - California
8 ANSWERS
If there is a balance owed on the lease when you close the doors, whom ever signed the lease would be liable for any deficiency. If you personally guaranteed the lease, then you would be personally liable. I would pay a local experienced real estate lawyer for one hour of their time to review your situation. You don't want to be "penny wise and pound foolish!"
Answered on Jan 13th, 2015 at 5:37 PM
If you personally guaranteed the lease, which is typical with most small business entities, the landlord can sue you. With a court judgment, the landlord can place a lien on any real estate you own. Further, unless the land is protected via state laws called exemptions, specifically the homestead exemption, the creditor could force the sale of the land to pay the debt.
Answered on Jan 12th, 2015 at 11:47 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
In bankruptcy, you can choose whether to keep the lease or reject it. Generally, people keep leases if they're going to use the property in the future or if they can sublease for more than the lease payments.
Answered on Jan 12th, 2015 at 5:05 AM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
You haven't indicated where bankruptcy might play our rule. If you break your lease, without a bankruptcy, then the landlord could sue you and presumably get a lien on your real estate. (These lesions aren't always very useful to the creditor but you can't be sure of that.) If you file a bankruptcy, you can get out of the lease, and the landlords lien then becomes a claim like any other, and is usually dischargeable in bankruptcy.
Answered on Jan 12th, 2015 at 5:02 AM
Not directly, but if they get a judgment against you, they can record an Abstract of Judgment which will prevent a sale or refi unpaid.
Answered on Jan 12th, 2015 at 5:00 AM
2 Awards
If you personally guarantied the lease or if you signed in your own name then the landlord may sue and get a judgment against you. Thereafter the judgment may be satisfied by collecting against you. This could include seizing the land.
Answered on Jan 09th, 2015 at 11:58 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
I cannot tell from the facts provided.
Answered on Jan 09th, 2015 at 11:57 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
at
Orantes Law Firm
Update Your Profile
If your business is a sole-proprietorship, yes. If it is under a business entity and the business entity is properly insured and all the corporate formalities observed, it would be difficult, but creditors may try if your land is valuable enough to make it worth their while. It would be to your benefit to consult an expert bankruptcy attorney as soon as possible so you know what your options are and even how to proceed.
Answered on Jan 09th, 2015 at 11:54 PM