What is the name of your state (Georgia)?
I started a new business roughly 1 1/2 years ago and signed a 5 year commercial lease in a high rent area of town. My business has been horribly affected by the economy and never had a good chance to get off the ground. Needless to say, I am completely out of cash and credit - I have exhausted all available resources. I will be unable to pay the upcoming month's rent.
I have a bunch of questions (one's I probably should have asked in the beginning rather the end) but will only ask a few:
Will I be personally liable for any judgement against me if the Landlord takes this to court? The lease was signed as such: Tenant _____________(my name) d/b/a _____________ (my LLC's name). This was on the first page and the signature page. I did not personally guarantee the lease - or does the way I signed the lease imply that I did?
When do I notify my landlord that I am having difficulties and will not be making this months rent? I realize that speaking to the landlord before I bail will be in my best interest, but when do I do it? I am friendly with the landlord and have actually done business with him; I feel horrible about the situation and realize that he is running a business too. I honestly have no other option.
While talking with the landlord, is it reasonable that I ask him to terminate my lease and keep my deposit? The only thing I have to offer him is the security deposit. I want to avoid court and a judgement at all costs, but I don't have much to negotiate with? Will telling him I'm filing bankrupcy change his views on pursuing a judgement?
I am at a very low point and have been successful in everything I've ever done. This is the last thing I wanted to happen - but it's time to call it quits. My situation is very embarrassing and has cost me a ton of money.
The space is in an A+, very desirable location and should re-lease in 4-6 months.
Please save the "You should have had a better business plan" and the "You signed the contract and you knew what you were getting in to" comments.
I am looking for real life, practical answers and advice.
Any and all help is greatly appreciated. Thank you in advance for your advice.What is the name of your state (only U.S. law)?