business -- lease option

[kpprpet]

California

hi,

Like other posts, We are facing serious pressure on our "store" business we bought a few months ago on a new 'S-corp' we formed.

But, with recent economy, the business is so bad and noy buyers turned up so far, we are trying other options such as Liquidation / BK.

Can anybody help me by responding how to avoid landlord's lease ? (We signed lease on our s-corp, but we still gave our personal details). Will business BK break the lease?

Thanks.

 

[CraigFL]

The S Corp is surely on the hook until the end of the lease but if you personally signed the lease (not "Joe Smith, for S Corp") and/or the lease says "jointly and severally" -- meaning you personally AND the corporation, you may be responsible too. Most credit extenders like to put this in because they don't trust corporations alone.