question category: Creditor Calls & Letters

Can a commercial Landlord make me personally bankrupt?
Submitted on: 7th Jan 2009 by Non-Member | Total Answers: 2

I am personally liable for a 15 year lease on a commercial premises, the shop due to current financial situation is making a loss so I need to surrender the lease which they won't agree to, I own a house but am in negative equity and have no savings just a car worth about £5000 I think, and jointly own the house with my partner whom earns very little, what should I do?

Answer this question

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Can a commercial Landlord make me personally bankrupt?

I have been in a similar position but the lease was in my companies name. I had not signed a personal guarantee so managed to walk away. I take it the lease is in your name not a limited company?

My advice would be to do everything in writing. Explain your position. Look to sub-let the lease as quickly as possible. Write to them telling them how much you can afford to pay each month given your position of losing your income etc, and keep this dialogue in writing open. If it goes to court this will really help you and show the judge that you tried your best to pay them and ensure they were not out of pocket.

Also, seek professional advice from a charity or company. You can't know too much. Most advice is free.

Submitted on: 7th Jan 2009 by Matt (not verified) Non-Member

0
 

Re: Can a commercial Landlord make me personally bankrupt?

The short answer is yes. If the company isn't limited and you are personally liable.
However, given what you have said about your assets the landlord would have to be pretty vindictive and wealthy.
I'm not a business expert, but can you sell the business, even for a nominal sum? Without the personal guarantee you may have had the option of liquidation.
Other than that i would continue to pay what you can afford towards the lease in order to show willing and as the previous poster said keep everything in writing and speak to a business advisor

Submitted on: 9th Feb 2009 by Darren Member

0
 

Post new comment

The content of this field is kept private and will not be shown publicly.
Type the characters you see in this picture. (verify using audio)
Type the characters you see in the picture above; if you can't read them, submit the form and a new image will be generated. Not case sensitive.

Featured Debt Charity

“What we like most about the help the Debt Advice Foundation provide is it’s balanced and fast. You’ll get the right solution suggested confidentially in hours not days.” Debt Advice Foundation