Landlord worked with leasee whose business was struggling. 2 year lease expired, but, leasee still owed about 5 months rent. Landlord allowed tenants to stay on month to month basis (contract not resigned, but, conditions remained the same). Tenants made efforts to catch up, but, could not. Finally, tenant gave notice to close business 2 years later when rent was now about 8 months behind. (This happened from making partial rent payments some months and a few times missing a month completely) Tenant held an auction at the site (with the approval of the landlord) to liquidate assets and gave landlord what amounted to 4 months rent from the proceeds. The partnership/business sent in a notice to dissolve with the state. The landlord asked about the balance and other that about $225, nothing more was sent. A letter to the landlord stating that any effort to collect the approximately 3 months rent uncollected, would result in possible bankruptcy of both ex-partners. Nothing was heard of for about a year and then collection calls began. About 4 months later legal contact was made and now the leasee is being sued for the 3 months uncollected rent. Although the landlord did file notice to quit paperwork with the state several times during the 4 years of leasing, each time he allowed them to stay and try to make larger rent payments. While the landlord did try to work with the tenants, he allowed the rent owed by the tenants to reach an unsustainable amount. The tenants made an effort to cut into that amount by having a liquidation sale. Both ex-partners are still in financial straights 2 years later and cannot afford the requested amount. They are considering possibly making an offer to settle, but, if that is not accepted than bankruptcy is an option. Collection on any judgment would be very difficult, but, would be an albatross around their necks for years to come.

Just because a landlord was lenient and allowed the tenant to continue despite being in arrears doesn't not absolve the tenant from owing the rent.

Hello r:

I don't know how much the rent was, but it seems like a rather drastic move to declare bankruptcy to avoid a few hundred dollars they owe...

excon