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A lot has been written about lease negotiations for good reason. You should never take a commercial lease for granted. It’s one of the most significant contracts a business owner signs, and a single paragraph of ambiguous language in a commercial real estate lease can result in years of frustration or possible lawsuits.
It is one thing for a customer declaring bankruptcy to discharge its debts to you as uncollectable. But there is an even worse outcome that can occur, called a preference action.
You know you are in a preference action when your company receives a letter of demand from either the debtor or the trustee. The demand is for immediate payment. It will feel like money is going in the wrong direction, and it is.