How can I get out of a business lease agreement and personal guarantee?
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How can I get out of a business lease agreement and personal guarantee?
I am struggling with my business, I have told the company I am trying to pay as much as I can. They continue to charge me late fees, won’t pick up the equipment and hold me accountable for way more than what the lease was for (which was only for 60 months and we are on the 67th month). Plus they continue to call the person who also signed with me but is no longer part of the business. I would like to know if there is a way to work something out with these people so that they stop calling her, give me a break and pick up their equipment in order to stop the monthly charges.
Asked on July 12, 2011 under Business Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Is the business lease agreement that you signed a personal guarantee for an entity that you have an interest in? If the entity is no longer in operation, you dissolve the entity be it a corporation or limited liability company of bankrupt it. That is how the entity gets out of the lease agreement.
The problem is that you signed a personal guarantee for the lease pertaining to the equipment so you are personally liable under the lease for your business regardless of whether you dissolve the entity that you signed the guarantee for or bankrupt it.
If the company that you have an equipment lease with will not restructure the agreement as far as payments and the monthly charges you and your business cannot afford to pay, you should consider consulting with a bankruptcy attorney. A bankruptcy attorney could possibly file a reorganization bankruptcy filing for you and/or your business to restructure the payments owed to all creditors that meet your income flow personally and for the business.
Good luck.
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