Many small businesses have signed personal guarantees on their commercial leases, meaning that landlords will come after them even after they've closed.
Restaurants for example will often have 5-10 year lease terms.
Restaurants for example will often have 5-10 year lease terms.
Yep. Just signed a 7 year lease and personally guaranteed it. More things few people are talking about when advocating for lockdowns.
There's an unfortunate stigma about bankruptcy in the U.S. which leads to _far_ fewer people/businesses filing bankruptcy than should be.
No one is better off limping along under unsustainable debt, not businesses and not individuals. We need to get rid of this stigma and let people use the tools we put in place to solve these problems.
Just because it's not permanent, doesn't mean bankruptcy is an easy option.
There’s a lot of nuance, and it’s hard to generalize, but the system is designed to provide some relief in a reasonable manner.
That being said, Australian banks are notoriously tight-fisted for any non-property investment, so perhaps things are more amenable in the USA.
The trick is to get them sober, washed and suited up for the meeting where you sign.
And be very, very nice to them the next few years when they ask you for a favor.