Rexburg, ID asked in Business Law and Bankruptcy for Idaho

Q: My son and I own a wine bar under an LLC. We fell behind on rent and our landlord tells us he will take all our assets

and we must finish paying on our lease for another 6 months. Can we file for bankruptcy and would it be helpful

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1 Lawyer Answer
Michael Hales
Michael Hales
  • Consumer Law Lawyer
  • Rexburg, ID
  • Licensed in Idaho

A: I would speak with an attorney as soon as possible because the solution will be very specific to your situation. In general, the landlord may be able to utilize company assets to collect on unpaid rent. Bankruptcy may be an option, but depending on which chapter you file, if the value of the assets exceeds the debts, the landlord will get it anyway. You could try to restructure to the debt, but this may be done outside of bankruptcy court through negotiation. Like I said, I'd recommend having an attorney review your situation in depth to help you make the decision that will benefit you the most.

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