How To Get Out Of A Personal Guarantee Lease

How to get out of a personal guarantee early.

How to get out of a personal guarantee lease. You could offer your landlord a settlement on the remaining rent debt. Show proof of consistent revenues and profits p l statements balance sheets etc ask for an amendment to the lease after 12 24 months. Within commercial banks loan officers are rewarded whenever they can boost a loan s underlying security or loan coverage. You could ask for an amendment to the lease or renegotiate the guarantee terms.

The starting point to negotiating your way out of a personal guarantee is to first understand why they are requested. Ask for the guarantee to expire after 12 24 months as long as you. Request a time limited guarantee. Similarly if you signed a personal guarantee for a friend or family member s loan you ll still be on the hook if they file for bankruptcy.

Landlord the personal guarantee goes away or reduced by certain amount of time you can also try to tie the time limit to your business doing a certain amount of gross sales which you can substantiate to the landlord and if you achieve that level. Just because your landlord is demanding a guarantee does not mean that you cannot negotiate a creative mutually beneficial lease. First there s no guarantee that you can get out of a lease early without paying penalties. Those penalties are typically defined by your lease and can include one or more months of your lease or other monetary compensation to the landlord.

Consult with an attorney on what your options are. Or you could just bail and handle it in court later. Ask your landlord to reduce the period covered by the personal guarantee to one or two years rather than the entire term of the rental. You ll have to file individual bankruptcy to get rid of the obligation.