If you're considering bankruptcy for your S corporation,
here's
some plain talk about what to expect.
There are several reasons for a business eviction. Your lease
contract will stipulate circumstances whereby you must leave
the premises. Among those, of course, will be the failure to
pay the rent. There are ways, however, of renegotiating with
landlord to prevent an eviction which would not only be costly
but would also confuse your clientele.
You should be aware that common practices of business eviction
in the past such as intimidating tenants are both illegal and
dangerous. Your landlord cannot padlock your property, put
your belongings out in the street, shut off the utilities,
or other harassments that once were common practice.
You should know that evictions are legal matters and the landlord
must do them according to the law. Before you even get eviction
notices, you should first try to negotiate a lower rate from
your landlord. Failing that, you will likely start receiving
eviction notices. Usually these will be legal documents giving
you a deadline for making your rent payment. Should you fail
to do that, the landlord will file the eviction petition in
court. These eviction orders are reported to be the fastest
moving cases in courts. The sheriff’s office or a marshal’s
office will handle the eviction.
What You Can Do about Business Eviction
Is there anything you as a tenant can do about business eviction?
Probably. You need good legal advice and the knowledge of how
to proceed. Like all business problems, it will not be a pleasant
experience, but it is something you must deal with.
What are the ramifications of an eviction from your business
property? First, it gives your business the stigma of instability.
This will lose customers or clients because no one wants to
begin a business transaction with a company that may no be
in business the next day. Second, it makes it necessary to
find new property quickly. Just what you need for your business
may not be available on such short notice. Third, a new landlord
will look into your history and may refuse to take you on as
a tenant fearing that you may default on your rent.
The law is not stacked against the tenant. There are fair
recourses available in the face of possible business eviction.
Like all areas of business, you must spend time gathering your
resources and prepared to take the proper action. This is not
a time to put your head in the sand and hope the problem will
just “go away.” In avoiding a business eviction,
there is also the need for some restructure so this situation
never presents itself again.
How
to turnaround your business without bankruptcy.
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