Lease Guarantor

[langtusj]

What is the name of your state? San Jose, CA

Sorry to post this thread here but can't find any other forum close to this. I sold a business early this year but had to sign as a guarantor on the leasehold (otherwise, the landlord would not approve of the assignment). Last September, my buyer defaulted and abandoned the store. Now I got a letter from the property managment saying that I have financially responsible for the rest of lease agreement (up to $105,000) or till they find a move-in tenant. The current due balance is already almost 10K. Just wonder if anybody has run into similar situations and how you got out of it. Can I file chapter 11/7 to protect myself and my house? (I just bought a house). Thanks.

 

[Ciarraine]

What is the name of your state? San Jose, CA

Sorry to post this thread here but can't find any other forum close to this. I sold a business early this year but had to sign as a guarantor on the leasehold (otherwise, the landlord would not approve of the assignment). Last September, my buyer defaulted and abandoned the store. Now I got a letter from the property managment saying that I have financially responsible for the rest of lease agreement (up to $105,000) or till they find a move-in tenant. The current due balance is already almost 10K. Just wonder if anybody has run into similar situations and how you got out of it. Can I file chapter 11/7 to protect myself and my house? (I just bought a house). Thanks.

Yes, you could. You could also try and pursue the defaulting party. It's a lot of money you're on the hook for, so it's probably worth spending a little and going to see a good attorney.

 

[langtusj]

Yes, you could. You could also try and pursue the defaulting party. It's a lot of money you're on the hook for, so it's probably worth spending a little and going to see a good attorney.

Thanks for the quick response. What do they normally go after when you file a chapter 11/7? Thanks.