business doomed

[faithnlve]

What is the name of your state (only U.S. law)? VT. My mom and brother both own an LLC. They are over 30,000 is debt in the business to landlord. My mom filed personal bankruptcy 3 years ago. There is about 10,000 in assets within the LLC. Can my mom and brother file bankruptcy on the business? They are both completely broke. What are their options? thanks

 

[Hot Topic]

What is the name of your state (only U.S. law)? VT. My mom and brother both own an LLC. They are over 30,000 is debt in the business to landlord. My mom filed personal bankruptcy 3 years ago. There is about 10,000 in assets within the LLC. Can my mom and brother file bankruptcy on the business? They are both completely broke. What are their options? thanks

Why are you writing instead of your mother and brother? They should be asking about their options.

 

[faithnlve]

I was thinking about taking over debt. Business is starting to turn around, but they have over 25,000 in back rent due. Not a smart idea to take on that much debt. My mom became disabled and my brother has depression. The landlord came into the business and said they are closing them down April 18th. I cannot find anything in VT law to protect the business. Landlord says the only way they will not shut them down is to pay them 18,000.00. I really don't have that kind of money on me and the business has already taken out a small business loan. Does filing any bankruptcy protect? And most importantly, in Vermont is the process of commercial tenant eviction the same as residential tenant eviction? Does the commercial landlord have to go through the courts to evict them? Any advice would be so appreciated.

 

[BanksSuck]

From what I have read in the National Landlord Tenant Guides;

An eviction is a court action to LEGALLY remove the tenant from a rented unit. As in most states, a Vermont landlord cannot "lock you out" of your rented unit, turn off the heat, water or other utilities, or remove the tenants belongings without FIRST going through the Vermont Eviction process.

In the Vermont Eviction process, a landlord must give a written eviction notice to the tenant. The notice in most states is usually called a "Notice of Termination of Tenancy" or a "Notice to Quit." The type of notice the landlord is required to give a tenant depends upon the grounds for the eviction.

I really don't have any advice as far as bankruptcy is concerned other than to say that there are no specific rules for dealing with a Limited Liability Corporation for bankruptcy filings. However, because they created an LLC, as owners of the business, their personal assets are normally protected from some or all liability for debts of the LLC.

 

[Zigner]

From what I have read in the National Landlord Tenant Guides;

Why would you even bring up residential LL/Tenant laws?

I really don't have any advice as far as bankruptcy is concerned other than to say that there are no specific rules for dealing with a Limited Liability Corporation for bankruptcy filings. However, because they created an LLC, as owners of the business, their personal assets are normally protected from some or all liability for debts of the LLC.

You really ought to stop.

 

[BanksSuck]

Why would you even bring up residential LL/Tenant laws?

You really ought to stop.

The National Landlord Tenant Guides do not ONLY apply to residential tenant laws. But we know all you are doing is carping.

Carp on this - The landlord has to go through the eviction process regardless if it is a house or a storefront.

Also, I own a business and probably know more about LLCs then you do - otherwise you would have offered an opinion instead of sniping.

 

[Andy0192]

The landlord has to go through the eviction process regardless if it is a house or a storefront.

Blatantly false.

 

[BanksSuck]

Your proof?

 

[justalayman]

You claim it is false - the burden of proof is on you.

You obviously have no idea about anything concerning commercial tenancies. It is a world apart from residential landlord tenant law. About the only thing similar is the tenant pays the landlord. Outside of that, there is really no comparison.

 

[Andy0192]

You claim it is false - the burden of proof is on you.

Actually, you claim that commercial landlords have an obligation to go through an eviction process. The burden of proving that to be true is on you. It's your statement.

 

[BanksSuck]

Actually, you claim that commercial landlords have an obligation to go through an eviction process. The burden of proving that to be true is on you. It's your statement.

No burden on me at all.

You obviously have no idea about anything concerning commercial tenancies. It is a world apart from residential landlord tenant law. About the only thing similar is the tenant pays the landlord. Outside of that, there is really no comparison.

No, I actually Do know what I am talking about.

Commercial leases normally contain self-help language allowing a landlord to re-enter leased premises and remove a tenant upon default without notice or court order. This is considered a self-help eviction. Self-help evictions must be commercially reasonable, and provided for in the lease. Self-help evictions might consist of changing locks, turning off utilities, or removing doors or windows.

Can the landlord simply change the locks and oust the tenant? As a general rule, the answer is no.

See Vermont’s ejectment statute, 12 V.S.A. § 4761 et seq.

Courts have describe the ejectment statute as intended to provide a process to pursue an eviction. As per the Vermont Supreme Court, the sole failure to pay rent when due does not result in forfeiture of a lease. A court order must be obtained and self-help is not permitted.

The entry and detainer statute prohibits a landlord from entering “except where entry is given by law,” and can not be made “with strong hand nor with multitude of people, but only in a peaceable manner.”

If the landlord has a strong case then expedited affirmative relief can be achieved through a same-day preliminary injunction proceeding.


So, the $25,000 that the tenant is in arrears with the landlord for past due rent does not result in forfeiture of a lease. A court order must be obtained.




If I were offering an opinion, I would have said "IMHO..." Fact is, I love researching legal case history. The Appellate and Supreme Courts [States or US] hold a plethora of information pertaining to legal issues.

I don't live in VT, but in 30 minutes, I found the answer to the commercial lease question.

 

[Andy0192]

from your own quote...

Commercial leases normally contain self-help language allowing a landlord to re-enter leased premises and remove a tenant upon default without notice or court order. This is considered a self-help eviction. Self-help evictions must be commercially reasonable, and provided for in the lease....

I don't live in VT, but in 30 minutes, I found the answer to the commercial lease question.

What you found was a website written by a lawyer looking for clients - cautioning them that they should consult a lawyer before doing what was allowed (and agreed upon) in their commercial lease.

Business People-Vermont: Contributed Column, Red Tape, Lock ?em out or go to court?

Nice try. Got any actual case law to back up that man's opinion?