Legal Question in Bankruptcy in Minnesota

business debt

We owned a bar (bad choice of business and bad business decisions) the building was leased. We made it 4 years 6 months but still owe the landlord another 6 months rent for a guaranteed 5 year lease. The bar is a corporation that we plan to file bankruptcy. There is quite a bit of debt but the thing that concerns me most is the lease because that is another $30,000.00 dollars. We might be able to pay about 3 months of it from life insurance. But would be hard pressed to come up with the rest. The building was completely updated by us (carpeting, fixtures, equipment). Well over $50,000 in improvements..can any of that be used to offset the debt we will owe the landlord? Adding value to his building? I do not want to see my father go into his 401K or lose his home! Any help would be appreciated.


Asked on 5/31/07, 7:58 pm

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

Re: business debt

You need way more than Law Guru.

There's no way to answer your question about the lease for sure without actually looking at the lease. That said, I would be surprised to be able to claim anything for the improvements.

There are exemptions for 401Ks and for life insurance which protect those assets from creditors. So if you use money from those resources, you are giving the creditor something they would not ordinarily be able to get.

You and your family need a face to face meeting with a real live bankruptcy lawyer - like me.

Check out my info at mn-bankruptcy.com.

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Answered on 6/01/07, 9:38 am


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