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Personal guarantee on a commercial lease

Asked over 2 years ago - Boston, MA

Commercial Landlord / Tenant Real Estate

I signed a 5 yr comm. lease w/ personal guarantee on it on 2000 in Boston, business went down on year 2003, by Nov. of 2003, we ran out of money to pay rent, I closed up my business and look for job. 1 mo. later my landlord sued me for remaining 2 yr rent. At the same time, I got a job offer from a foreign company, we moved out of the country before the trial date. Later, we found out my place was rent out within 2 months. We are planning to move to CA in 2010. In this kind of situation, can this default judgment still come after me in a different state 7 years later? My wife didn't signed the personal guarantee, can they levy on my wife bank account?

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Attorney answers (1)

Phil A. Taylor

Reputation Level 14

Answered over 2 years ago. Landlord / Tenant Lawyer in Stoneham, MA.

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Am judgment is valid for 20 years, and during that time then can pursue you. By not appearing at the trial, you conceded to the landlord and judgment entered. Whether or not they are entitled to the full amount they are seeking may rely on a variety of factors. A review of the lease will be needed to determine if they were entitle to liquidated damages. They cannot pursue your wife if she is not obligated under the guarantee or the judgment.

You should consider speaking to an attorney about the situation to have a better understanding of your rights and liabilities. Feel free to contact me if you desire.

DISCLAIMER: This answer is provided in response to a "hypothetical" question and provided for general, informational purposes and does not create an attorney/client relationship. The information presented is not legal advice and may change based additional information and research. It is recommended that you speak to an attorney to discuss your specific legal issues.

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