Chapter 7 on Broken Lease
My question involves bankruptcy in the state of: W.V.
We had to leave(go out of business) after one year on a five year lease, landlord resumed business.
would it be better to save lawyer fee's and file chapter 7 now or do we need to wait for a judgment?
Re: Chapter 7 on Broken Lease
You can file for bankruptcy protection before a judgment is entered.
If the landlord never tried to re-rent the premises and simply took over occupation and management of the business you abandoned, he might not be in a good position to claim additional rent from you.
You can discuss the issue of what your liability is and the timing of a bankruptcy petition with your bankruptcy lawyer.
Re: Chapter 7 on Broken Lease
Assuming we file before he files suit, would we still need to defend ourselves after the debt was discharged or would he no longer be able to file.
Also would we still be able to go after him for our property still in building.
Re: Chapter 7 on Broken Lease
If the debt is discharged, it's discharged.
I have no idea what your lease provides in relation to property you leave in the building when your lease ends, but often a commercial lease will treat any such property as having been abandoned.