Landlord files Lawsuit for rent owed...Dont know what to do...

My wife and I started our business just over a year ago and unfortunately we had to close it down because of economic hardship and lack of financial backing. We could not find another tenant to fill the spot and we were informing our landlord of our situation. The landlord did not inform us that they would be filing a lawsuit against us until we got served for a lawsuit of 200k and have a court date next month…We would have tried to come to some type of agreement in order to make payments to them but the property manager tells us that it is now out of their hands…What can we do? We are young (24yo) newlyweds and have a home without any equity, have student loans, and other personal debt…We did sign a personal guarantee for the leased property to the land lord for 5 years, so on paper yes we do owe the money, but 200k is something no one can swallow…We don’t want to have a judgment on out credit as we are barley starting out lives, is it possible that they would settle with a stipulation and not enter judgment? If they do enter Judgment against us and we don’t have a home with equity can they take anything? We are struggling as it is and we are in fear that they will garnish our wages…would we be forced in to Bankruptcy? Would bankruptcy remove this type of judgment against us?? Sorry so long, just don’t know what to do at this point, we are honest people and are not trying to get away with anything, but what seemed to be a great opportunity of starting a business at such a young age became a nightmare…Thank you for any insight, help, or suggestions.

Aaron

You could threaten bankruptcy if they will not compromise or if they win the suit. They have to re-rent too so see if you can help find a new tenant...then he will have no damages.

....fewer damages that is.