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How can I break a contract for a commercial lease to stop increasing my debt?? |
Submitted on: 8th Jul 2009 by Non-Member | Total Answers: 1
Because of the financial crisis, I am unable to keep paying my monthly rental installments for my self employee business. The contract will still run for another two years.
However the landlord won't allow me to cancel the contract until I find somebody to take the lease, which is becoming incerasily difficult through the current situation. My debt is getting bigger by day and i don't know what to do!! Could you give me some advice? Should I go bankrupt?
Re: How can I break a contract for a commercial lease to ...
I can't possibly give you a yes or no answer to whether you should go bankrupt without getting some more details. Bankruptcy is the best option for some people - particularly if your business is no longer viable and you are insolvent. If you don't think you can trade your way out of debt and you don't have significant assets then its certainly worth considering.
If you are no longer trading or you move premises then the lease becomes a debt and you can either renegotiate it on that basis or clear it through bankruptcy, an IVA or another procedure.
Bankruptcy will have an effect on your ability to trade and on other parts of your life.
http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/guidetobankruptcy.pdf
If you want to ask me any questions about it, or your other options please click on my name and email me at Debt Advice Foundation.
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