Will a chapter 7 relieve me from my commercial lease?

[joecon916]

Hello all,

My wife and I opened a salon in April that is losing lots of money (sole prop) and signed a commercial lease for 3 years at $2k a month (1st 3 months free, we are supposed to start paying in July but will not be able to). If we file for chapter 7, will this also get me out of the lease? Can the landlord go after me for the lease if we are successful with filing chapter 7?

Also, can we sell all the assets in the salon (washer/dryer, shampoo stations, manicure/pedicure station, etc...) and spend the money on necessities or does the trustee get to control what can be done with the assets?

We are in California if that makes a difference.

Thanks!

[keepmine]

If you personally guaranteed the lease, it'll be discharged in a Chapter 7.
You won't be the first person who sold stuff in order to meet basic HH expenses.
If you sell anything prior to filing just keep records of what you spent the money on.
If you file bk and still have that stuff it becomes property of the bk estate and unless it can be exempted, the trustee will claim it.