Posted on: 05th May, 2010 03:29 pm
A few partners and I bought into a franchise which went belly up. Long story short, the lease was signed on the basis of us opening up as a branch. That never happened and we tried to do it on our own and we just can’t make it. We all signed personal guarantees and the lease. It’s a 5 year lease, which at the time was required by the franchise, even in these hard economic times. At this point hindsight is 20/20 and wish we never entered into this awful agreement. Our backs are pressed to the wall and we’ve negotiated the lease in the beginning, but business just isn’t there and we’ve dipped into our pockets to cover rent and other expenses.
At the moment, we’re in arbitration against the franchise owners, which in fact have taken more funds out of our pockets. My question is, in the next month or two, we just don’t have enough working capital to keep the business going. Can the landlord put a lien on my property even though it’s co-owned by my b/f and I. We’re not married. Can he put a lien on the property, only my interest of the property or at all?
Any advice would be appreciated.
At the moment, we’re in arbitration against the franchise owners, which in fact have taken more funds out of our pockets. My question is, in the next month or two, we just don’t have enough working capital to keep the business going. Can the landlord put a lien on my property even though it’s co-owned by my b/f and I. We’re not married. Can he put a lien on the property, only my interest of the property or at all?
Any advice would be appreciated.
Hi Guest,
If you cannot pay off the dues on time to the landlord, then he would be able to place a lien on your property though your boyfriend is a co-owner. However, in order to place a lien, he will have to file a lawsuit and get a judgment against you.
If you cannot pay off the dues on time to the landlord, then he would be able to place a lien on your property though your boyfriend is a co-owner. However, in order to place a lien, he will have to file a lawsuit and get a judgment against you.