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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I filed Chapter 7 over a year ago (discharged 11/26/07). I

Customer Question

I filed Chapter 7 over a year ago (discharged 11/26/07). I have a land contract listed as an executory contract on the petition. It is listed as a lease on the Statement of Intention and I had checked that I would assume the lease. I sent written notice to the land contract holder stating my intent. She did not respond and I did not do anything further to assume the lease. I have made timely payments on the contract since then. Is this contract still valid or can I walk away?
Submitted: 8 years ago.
Category: Bankruptcy Law
Customer: replied 8 years ago.

Sault Sainte Marie, Michigan


Already Tried:
Read Nolo BK section on leases. Read BK code. Googled.
Expert:  Ellen replied 8 years ago.

Hello,


Thank you for your question. I am happy to assist you.


The contract appears to still be valid. You indicated on your petition that you intended to assume the lease. You followed with the written notification of assumption. It appears that you have a valid lease subject to the terms of the lease.


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


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Ellen and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.

Hi,

I thought there were 2 parts to the section on assumption 365 (p):

1. Provide written notice of intention

2. If lessor doesn't respond within 30 days, provide second notice that contract is assumed.

I did not provide this second notice. Doesn't that free me from the contract?

Thank you

Expert:  Ellen replied 8 years ago.
Hello,


Here is 365 (p):


(A) If the debtor in a case under chapter 7 is an individual, the debtor may notify the creditor in writing that the debtor desires to assume the lease. Upon being so notified, the creditor may, at its option, notify the debtor that it is willing to have the lease assumed by the debtor and may condition such assumption on cure of any outstanding default on terms set by the contract.
(B) If, not later than 30 days after notice is provided under subparagraph (A), the debtor notifies the lessor in writing that the lease is assumed, the liability under the lease will be assumed by the debtor and not by the estate.
(C) The stay under section 362 and the injunction under section 524 (a)(2) shall not be violated by notification of the debtor and negotiation of cure under this subsection.


There is apparently no second notice requirement.


I hope that this information has helped you.


If I can be of assistance in the future, please ask for FLAandNYLawyer.


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