Legal Question in Bankruptcy in Pennsylvania

I'm going out of my mind looking for the answer(s). I sold a store to a guy (LLC). He paid half and I hold the note, 18 months later (out of 36), he and his wife filed for non-asset personal bankruptcy, and I was listed as one of the creditors. He still operates the business (maybe because it's under the LLC)?

And because it's "worth less than what is owed" it doesn't get sold off. So essentially, he got the cake and is eating it. He was paying rent (to the landlord) up until the bankruptcy (September). As of now, he paid October late and is behind on November and December, I was told by landlord. The reason I care is because I guaranteed the lease until my original one is up, which is on 7/11. He is deciding to close down the store since it's not doing good (claims he's doing the same numbers but not the same profit). If he does, then landlord will go after him and then eventually me. The question is can he include future rents in the bankruptcy? Obviously, he can't file another one for the rents from November to July so what happens?

By the way, his wife is making about $100,000 a year, and they're in this situation? Sure they have 3 kids and I have 1, but I'm making 1/3 of that and we make do. On top of that they get to say goodbye to ~$250000(total with credit card) bill...pisses me off.

Looking in the Purchase and Sale Agreement, I guess the broker somehow was ping-pong'ing between him as a buyer and his LLC as a buyer. I guess I can go after the LLC, but then the owner has filed bankruptcy so if I win, I end up paying my lawyer and maybe not get as much back? If I lose, I may also pay for his lawyer fees? He would also get to counter sue me.

I guess it also depends on how the landlord setup his lease, whether there's a lien on the house?

At this point, I'm just trying to move on, yet have peace of mind with the rent/landlord/guarantee stuff.

Thanks


Asked on 12/12/10, 9:40 pm

1 Answer from Attorneys



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