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socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38507
Experience:  Retired (mostly)
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We are subcontractors and have been in business for 10 years.

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We are subcontractors and have been in business for 10 years. Business is very slow now and we are not able to make are rent payments any more. We still have 6 months left and we won't make it if we have to pay 6,500. a month. We've asked to move into a smaller unit that costs half and proposed to pay an extra 2,000. a month untill we have caught up on our back rent, but they want to be payed in full before we move. We can't pay it! Is there any way to get out of this contract? Is bankruptcy our only option? This is really the only debt that we can't handle.
help rental hell

Bankruptcy is the only legal solution. However, if the landlord knows that you will be forced to file bankruptcy, it may be more willing to negotiate. You may want to consider offering the landlord a deadline and what you believe are reasonable terms. That way, everyone will know where you're at. The landlord can either give you a break and retain a paying tenant, or dig in its heels and get nothing.

 

Hope this helps.

 

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Customer: replied 7 years ago.

would chapter 13 or 11 cut the contract?

Chapter 13 is for individuals, not businesses, unless your business is a sole proprietorship (Schedule C filing on your 1040 Personal Income Tax Return). For any other business, it's either Chapter 11, which is expensive in terms of litigation fees, or Chapter 7, which means that you are liquidating your business (ultimately, to start over under a new name).

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