Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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?
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:
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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).