How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Phillips Esq. Your Own Question
Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 18384
Experience:  B.A.; M.B.A.; J.D.
16551887
Type Your Bankruptcy Law Question Here...
Phillips Esq. is online now
A new question is answered every 9 seconds

In a chapter 11 filing, if a lease with 3 plus years left has

Resolved Question:

In a chapter 11 filing, if a lease with 3 plus years left has been rejected, how do you calculated the claim for lost rent? CAM?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 5 years ago.

Thank you for giving me the opportunity to assist you. I encourage you to ask me for clarification, if you are not clear with my Answer.

 

What is CAM?

Customer: replied 5 years ago.
CAM refers to Common Area Maintenance but usually includes the tenant's share of taxes and insurance, all typically paid by tenant in proportion to their share of square feet.
Expert:  Phillips Esq. replied 5 years ago.

Thank you for the additional information:

 

CAM refers to Common Area Maintenance but usually includes the tenant's share of taxes and insurance, all typically paid by tenant in proportion to their share of square feet.

 

Your Question: In a chapter 11 filing, if a lease with 3 plus years left has been rejected, how do you calculated the claim for lost rent? CAM?

 

Response: First and foremost, if the Order approving the rejection of the lease does not also terminate the lease, then you should take all necessary steps to terminate the lease. Once the lease is terminated, you can then calculate the claim for lost rent by multiplying the months remaining on the lease by the monthly rent and the tenant's shares of the maintenance expenses.

 

Here is a good article on rejection of leases and its consequences:

 

http://abiworld.net/newsletter/realestate/vol1num3/RealEstateArticle1.pdf

 

 

Customer: replied 5 years ago.
More specifcally, the tenant has closed the business, abandoned the property and sent me the key. The question is do I claim the entire remaining rent for the duration of the lease and possibly CAM in the claim or do I claim what appears to be my legal limit, which I think is one years rent from date of filing? Tenant has paid rent and CAM through the efective date of the rejection (except that portion of the month before the filing which I have already claimed)
Expert:  Phillips Esq. replied 5 years ago.

More specifcally, the tenant has closed the business, abandoned the property and sent me the key. The question is do I claim the entire remaining rent for the duration of the lease and possibly CAM in the claim or do I claim what appears to be my legal limit, which I think is one years rent from date of filing? Tenant has paid rent and CAM through the efective date of the rejection (except that portion of the month before the filing which I have already claimed)

 

Response: You should claim the remaining rent for the duration of the lease including the CAM and see if the claim would be accepted or not.

Phillips Esq. and other Bankruptcy Law Specialists are ready to help you