Location: New Jersey
I own a small retail food business in a shopping mall. Unfortunately, the business consistently operated at a loss. After reviewing my financials, the landlord’s leasing representative told me they believe the business is no longer financially viable and suggested voluntarily surrendering the space.
The lease has several years remaining, and both my wife and I signed personal guaranties.
The landlord is seeking payment of significant rent arrears and has also stated they may pursue damages for the remaining lease term. They have asked me to submit a formal settlement offer if I want to voluntarily surrender the premises.
I have reached out to a few commercial real estate attorneys but they’re asking for retainers before they could even check to see if I’m screwed or not.
I have a house under my name as well.
My legal questions are:
Is it generally better to voluntarily surrender possession while settlement negotiations are ongoing, or wait until a settlement agreement is reached?
In situations like this, is it common for commercial landlords to negotiate a release of the personal guarantors as part of a settlement?
Should I go straight to bankruptcy? Will I lose my house?
What can the landlord go after if I don’t have the funds they are requesting?
Thank you.