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Taylor
Taylor asked in Business & FinanceRenting & Real Estate · 7 months ago

Commercial Landlord Lien: Take Personal Assets/ Bank Account?

If you have a commercial land lease or commercial property lease, and cannot make payments and fall behind and become in debt to your landlord... can the landlord sue and possibly take personal assets, such as home/car/personal bank accounts? 

Thanks!

Update:

Also this is in general/ not just during pandemic. I am researching and have never owned a business

Update 2:

Also, a lot of landlords require a personal guarantee, which an LLC or Corp. does NOT protect you from. But I do not understand whether the personal guarantee applies to personal assets, or just BUSINESS assets. 

7 Answers

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  • Maxi
    Lv 7
    7 months ago

    Yes, they can take you to court and win and then bailiffs can collect your property sell it at auction to get the money you owe plus their legal and bailiff costs

  • curtisports2
    Lv 7
    7 months ago

    Not if the lease was entered into by you as a corporation or LLC.

  • Slickterp
    Lv 7
    7 months ago

    No, they take the property back.  

  • Anonymous
    7 months ago

    If you gave a personal guarantee and they sued you they could. They would require a personal guarantee. And they have to sue you and get permission from a judge to start doing things like that.

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  • A Hunch
    Lv 7
    7 months ago

    We don't know where you are located.

    In the USA, only an inexperienced landlord is not going to get a personal guarantee (regardless of the business structure) unless the company has been financially independent for at least 5 years.

  • martin
    Lv 7
    7 months ago

    If you have limited liability, they can't do that.  Even if you don't, it would be rare for a judge to order your homestead and personal means of support to be liable, especially during this pandemic when all is forgiven, no evictions, very lenient.

  • Tavy
    Lv 7
    7 months ago

    Yes in the U.K., they can go through the Courts, take your assets and put a charge on your house.

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