Legal Question in Credit and Debt Law in California

My LLC in which I was a partner went out of business and had to walk away from a lease. We are not declaring bankruptcy per se but did not have enough to continue operations or pay the lease in full for the remaining 6 months ($1500 per month estimated). We tried to settle with the lessor but they would have no part of a settlement. There was no PG (personal guarantee) on the lease so my understanding is when it goes to collections we can just provide the collectors with our business delisting and move on? Should we offer the collector a settlement or is it redundant and a waste of personal monies as the company is gone? Thanks for your help!


Asked on 8/19/10, 11:06 pm

1 Answer from Attorneys

If your LLC is solid, there is no point in paying personal funds to settle with the lessor. If there is a chance that the lessor could pierce the company, then you should consider some settlement.

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Answered on 8/24/10, 11:13 pm


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