How can we get out of a commerical lease and close down our business, can we be personally liable for the rent

Business Lease: We are in a 3 yr. business lease and we are new-5months into-and business is so bad due to economy that we can not make our overhead. Also, my husband, owner, had a heart attack and had to have surgical intervention since opening. This was unexpected. Now his health is not up to speed. How could we get out of this lease and close down the business? Is it possible. - Is this your question? Add additional information
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Answers (3)

Gregory J. Jalbert

Gregory J. Jalbert

Contributor Level 6
I do not know landlord tenant law in Ohio but generally you are liable on the lease if you surrender it back to the landlord until he is able to release the space. At that stage your liability is limited to the amount already owed and any difference if he had to lease it out for less than what you were paying.
I would contact a bankruptcy attorney and discuss your finances with him/her to see if perhaps a bankruptcy is the way to bring this to an end.
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Robert Gregg McCurry

Robert Gregg McCurry

Contributor Level 2
The first thing you need to do is look at the lease. If the lease is in your or husband name individually as opposed to in the name an incorporated busines, you have personal liability. Also you need to be sure that you did not sign a personal gurantee of the lease agreement. If the lease is solely in the name of the business and the business is corporation (INC or LLC), and there is not a personal guarantee, generally you would not have personal liability.

To avoid a claims by crediors to pierce the corporation and pursue you individually you must avoid taking any action that could be construed as a fraudelent conveyance. You should not attempt to hide assets or pay yourself by the company to avoid paying crediors. If you do, then the court could set aside the payment and impose individual liability on you.
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Gene D. Lipscher

Gene D. Lipscher

Contributor Level 3
It depends on whether you personally guaranteed the lease or not. If not, then the landlord can only go after the business, which you say is failing. If you personally guaranteed the lease, then you can be personally liable for the payments due under the lease.
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