Signing a rental application - looking for advice (and quick please)

[fileda13]

I am self employed CPA/Business Consultant and my office is in my home. It is a great detriment to business growth.

I have been in a collaboration with another CPA for a niche business. An office opened up in her building. Currently she along with 2 other individuals have a lease for which they share. One of the 3 people is vacating their office, thus the opening for me. I've already signed a rental agreement with the 2 other parties who are on the master lease to pay $x/mo (my agreement with them to share space).

Today I am given a Commercial Rental Application to sign with the company they lease from. I honestly wasn't thinking ahead and only thought I'd be signing the shared agreement with the 2 other people (that was stupid of me). Obviously on the Commercial Rental Application it mentions subject to a credit check.

I have not divulged my Chapter 13 situation to anyone other than direct family. Here's what I'm thinking now. I think there is a risk of being denied due to my situation (credit check). Before I sign the Commercial Rental Agreement I feel I should tell the other two parties of my situation before it comes out with the credit check.

Do you agree with my thought? Also, and other advice would be greatly appreciated. This is new ground for me, and the first time since Chapter 13 that I am trying to step into something where the Chapter 13 seems like a brick wall.

[AngelinaCat]

This is a 'toughie'. But, yes, I think you need to talk to the other two people just in case. It is better to disclose ahead of time rather than having it loom up as a nasty surprise. I hope everything work out for you.

[fileda13]

This is a 'toughie'. But, yes, I think you need to talk to the other two people just in case. It is better to disclose ahead of time rather than having it loom up as a nasty surprise. I hope everything work out for you.

Definately a tough one - never thought it through. When I signed the sub rental agreement with the two other parties I thought it would end there. Since there is one master lease for the overall office space, now I'm signing that lease for my name to be added to it. Ugh. I'm just sitting here wondering if they'll actually do a credit check, and if so what will come of it (OK? Be denied?). My major concern is to not strain the relationship with this other CPA with this business venture that has a tremendous upside. Being truthful in business (at least from my perspective) is most important. If I tell them and nothing ever came of the credit check, then the only bad thing there is my secret is out. If I don't tell them and I get denied because of the CH13 I have egg on my face.

Man - I need a drink. :-)

[ValleYum]

Hi fileda!

Is this rent (debt) that you are personally guaranteeing? If so, do you need to (and maybe you already have done this) clear this with your Trustee?

I agree with AC - disclose! It will be a tough conversation but I think your relationship with the other CPA will be the better for it.

Good luck to you!!

[fileda13]

Hi fileda!

Is this rent (debt) that you are personally guaranteeing? If so, do you need to (and maybe you already have done this) clear this with your Trustee?

I agree with AC - disclose! It will be a tough conversation but I think your relationship with the other CPA will be the better for it.

Good luck to you!!

Rent agreement with the other tenants on the lease, along with being added to the actual lease to the owner. Terms are monthly with a 6-month advance notice - my agreement with the other tenants on the lease.

[Pandora]

Make sure you READ EVERYTHING in its entirety - you dont want to get stuck having to be responsible for the other parties' share should they back out at any given moment. My sister learned the hard way in a very similar situation - and ended up getting sued for $50K plus legal fees.

As VY mentioned - make sure you run it by your Trustee & lawyer prior to committing.