Legal Question in Real Estate Law in California
default on lease
I am part owner in a business which i am about to close. We had to break the lease. THe landlord wants $20,000 My partner filed personal bankruptcy. i reached a deal with the landlord for $7000. on my end. When we close the business is allowed to come after us for the rest if the business is no longer active?
3 Answers from Attorneys
Re: default on lease
It depends upon whether you have your "deal" with the landlord in writing, what form of business entity your operated and whether your partner filed for bankruptcy before or after the breach of lease. If you don't have the "deal" in writing and your are not a corporation, the landlord can potentially pursue you and your partner if the breach occurred after the filing of his bankruptcy. If the breach occurred before your partner filed for bankruptcy he (but not you) may be protected.
Moral of the story, get it in writing and don't rely on any verbal agreement with your landlord.
Re: default on lease
Unless the $7,000 settlement clearly resolves the entire debt as to all parties, the landlord can probably seek the balance from any party, probably including the business (depending on all the facts). It may be worth it to retain an attorney to make sure that your written settlement resolves the matter.
Re: default on lease
I dont understand - didnt you two reach a deal?
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