Business lease - BK impact

What is the name of your state? NY

I have just moved my business to much less expensive space and signed a new lease w/ personal guarantee. There's a clause in the lease that says I would be in default if I have a BK filing. How can I deal with this. I have to do a personal C7 in a few months.
Any opinions?
Thanks

"Default" is meaningless unless the landlord wants to evict you. As long as you're paying the rent on time, and you don't do anything else to violate the lease, the landlord probably isn't going to care if you file personal bankruptcy.

If you file bankruptcy and don't pay the rent, the landord will probably seek to have the court's automatic stay lifted, which will allow him to evict you.

If you're sure you're going to file, and you have to list the landlord as a creditor, I suggest you speak with him/her first. Explain the situation and let them know that you intend on continuing to honor the lease and pay the rent. They should be ok with that.

In this environment, monst landlords are just happy to get money...they don't care if the renter is bankrupt....just that the check clears.

One more thought...

Is the business a corporation? Or is it a sole-prop?

If it's a corporation, you don't even need to tell the landlord that you're filing personal bankruptcy...it's none of their business.

If it's a sole prop, you will need to let him/her know.

In NY,

My new business lease is personally guaranteed - not under the business corp. What would be the scenario if I simply didn't list the landlord as a creditor?

Thanks

You risk having your bankruptcy thrown out of court if you don't list it and the trustee finds out.

When it comes to dealing with a bnakruptcy trustee, it is in your best interest to be honest about everything.

NY.

I can appreciate the risk involved. Not smart.

Generally speaking, though, what if one honestly forgets to list a minor debt (of whatever size). Does that jeopardize the bk? And how does the trustee find out if it's not on the credit report?

Thanks

The only way a trustee finds things out is if another creditor complains. Or, the trustee could find out by digging deeper into your case because something else doesn't add up.

It's not a big risk...but it's a risk.

If they found out, and you acted innocent (I forgot to list it), nothing is likely to happen, provided there's no fraud against a creditor involved.