Nothing is More Terrifying Than Being Left in the Lurch

No, we don’t mean the 6 ft 9-inch, awkward, gloomy butler from the Addams Family. We are talking about being left in a financial bind when your commercial tenant, or someone you do business with, decides they no longer intend to keep their part of your business arrangement. Whether it’s defaulting on a lease agreement or failing to pay invoices, you or your business’ ledgers could be left in the red. Terrifying, we know!

Well, from reading last week’s post entitled “When do you need to sue?” you should already know that our firm encourages clients to move quickly. Don’t delay in starting a legal claim for repayment. While we already warned you about the ghoulish two-year limitation deadline you have to bring your claim, there is one more concern to keep in mind when looking for repayment.

A growing trend among corporate tenants is to default on their lease agreement or renege on invoices, declare bankruptcy, and set up a new corporation. Even if the court finds in your favour, the old corporation can show that it now has no assets to pay out – having already moved all its assets into a newly incorporated business. So, while you may be left with a successful court order in your hand, your pockets may be empty. To our firm, this is a scarier scenario than being a resident on Elm Street.

Don’t let this nightmare situation be your realty.

We encourage our clients to act right away, before the other party has a chance to hide their assets and avoid repayment.

We strike while the cauldron’s still hot and so should you!

Robin K. Mann, JD,   Associate Lawyer

rmann@andriessen.ca

%d bloggers like this: