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Closed My Business Being Sued for Personal Guarantee on Leased Office Space

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pramos

Guest
Landlord of the office building I leased space in has served me a summons for the rent due. I closed down my business because of the financial losses we had suffered. Everything was sold to pay off bank loans and creditors. The landlord was notified of our decision, we have even attempted to find suitable replacement renters to no avail. The landlord has produced a personal guarantee statement signed by me and is pursuing rent although I have not occupied the space. While I have not filed bankruptcy and have managed to pay everyone off, I cannot get landlord to back off although they are fully aware of my circumstances. What is the worst that can happen at this point, I am in the 20 day period in which to respond to the summons.

Down and out and receiving unemployment.
Minnesota
 


vrzirn

Senior Member
He will sue you, get a judgement and at some point down the road, when you are back on your financial feet, he will find a way to collect. With interest.
 
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pramos

Guest
Personal Guaranty....

Will filing personal bankruptcy prevent the landlord from securing a judgement against me?
 

JETX

Senior Member
"Will filing personal bankruptcy prevent the landlord from securing a judgement against me?"

Literally, the answer is no. The filing itself will only put a stop to any efforts to recover the debt, including legal action. You will have to go through the entire bankruptcy process and actually get a discharge judgment from the bankrutcy court in order to remove the debt (and then, only in a Chapter 7, liquidation action). A chapter 13 will possibly allow a reduction in your debt load.
 

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