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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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WHEN A RESIDENTIAL landlord FILES ch 13 BANKRUPTCY and rejects our lease what does that me

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WHEN A RESIDENTIAL landlord FILES ch 13 BANKRUPTCY and rejects our lease what does that mean for us the tenant? What options doe we have?

Hi JACustomer,

How was the lease rejected?

Customer: replied 5 years ago.
We received the landlords initial ch 13 filing notice. In the plan it states that the landlord surrenders our leased property.

Is this for a private house, of for an apartment?

Customer: replied 5 years ago.
Private townhome.

If surrendered, the property will be taken by the Bankruptcy trustee and sold, or foreclosed by the bank. Unless the property has equity (market value more than balance on the mortgage), the property will be foreclosed by the bank.

Until you receive notice of one or the other, the rent continues to be payable to the landlord, and once the property is transferred (to the trustee or to a new owner if a foreclosure), at that time the rent will be payable to the trustee or new owner.



Customer: replied 5 years ago.
Oul landlord has asked us to stop paying him rent. A Trustee has been deignated, should we contact the Trustee and stop dealing with the landlord?
Yes - you should stop sending the rent to the landlord, and contact the trustee to find out what you should do with the rent.
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