Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Bankruptcy would eliminate the landlord's claim for the future rent of 3.5 years, and any other dischargable debt you may have. The bankruptcy would show up on your personal credit history if you filed personal bankruptcy for ten years.
If you filed Chapter 11 it would show up on your business credit. Whether you should file personal bankruptcy would depend on if you personally guaranteed the lease. If you did then in order to get rid of the lease through bankruptcy you would need to file personal and business bankruptcy. Most personal debt and business debt would be eliminated; some debt is not dischargable such as tax liens, child support obligations, student loans.
As for the cost, the filing fees differ for each Chapter. Chapter 7 is $299, Chapter 13 is $274, Chapter 11 is$1039.00. There are two credit counseling classes you must take that run about $50.00 each. The attorney's fees vary by region but usually run between $1000-1700 for a Chapter 7, $2500 and up for a Chapter 13, and Chapter 11 is to hard to say.
You should call for a free consultation with a Bankruptcy attorney in your area to discuss your options and which Chapter is right for you.