I have a small Dollar Store in fForida. I am going to have to close as I can't pay the lease anymore.

Up till this month I have been paying on time. I am operating as a corporation, I am the president.

I have been open a year and the lease is for 3 years. I pay $2,788 a month and gave a $8,000 deposit.

I have never made money from this store and have been supporting it from my own pocket hoping it would turn around.

If I close what about the money I will owe for the remainder of the lease? Credit card processing agreements ( 3 years) etc etc.

Do I have to file for bancruptcy? I have no assets, I lease my apartment and have no more savings. What should I do? If I close the corporation what happens?

Thank you.

Depending on how the corporation was setup, your personal assets should be protected. However, the corporation should declare bankruptcy, otherwise it will owe the remaining amount on long term contracts.

Depending on how the corporation was setup, your personal assets should be protected. However, the corporation should declare bankruptcy, otherwise it will owe the remaining amount on long term contracts.

No need for the corporation to file for bankruptcy protection, unless it has assets to protect. As I read the question, there are no assets. Chapter 7 is not available for corporations anyway.


If I close what about the money I will owe for the remainder of the lease? Credit card processing agreements ( 3 years) etc etc.

Do I have to file for bancruptcy? I have no assets, I lease my apartment and have no more savings. What should I do? If I close the corporation what hapens?

So, keep in mind, you don't owe that money; the corpration does. If the creditors call or write you, either ignore them or politely tell them that the corporation is defunct and that they might as well write off the debt. Keep the distinction between the corporation and yourself in mind when you talk to them. Do not refer to the money "I owe". Always refer to the corporation in the third person ("the corporation owes ...").

What can they do? Sue the corporation and collect the resulting judgment from assets of the corporation. No big deal, right? Assuming that you have not personally guaranteed anything, and that you kept the corporate finances separate from your personal finances, they can't touch your personal assets.