My LLC business closed 1yr ago with a backrent at the time of $15k. Landlord failed to mitigate and kept charging rent $5k a mo to us, we could not pay. April09 new tenant assumed our lease after the plaza had to be rezoned to accomindate the new tenant and is currently paying rent for the space we once had. April 09 we recieved a lawsuit for $97K for past rent and future rent through Oct09. They are refusing to negociate with us since Sept08 and now refusing to respond to our attorney. We have a personal guarentee on our lease no specific property was mentioned. Can we file for business and personal bankruptcy to protect our house, cars etc? Which bankruptcy type should we file for so this mess can end?
If the business is dissolved, there is no reason to file for a business bankruptcy. If there is no business, there is no way to collect against the business. If the business has assets, you will want to look at filing a business Chap 7 and liquidate the assets. If you wanted to continue the business, I would advise you to look into filing a Chap 11 bankruptcy.
Since you personally guaranteed the loan, they can still collect from you. You probably want to look at filing a personal bankruptcy. You should consult a local attorney to determine which chapter bankruptcy best fits your situation. The attorney should look at your debts and assets and be able to assist you.
It sounds like you already have an attorney to try and negotiate with the Creditor.