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 Elizabeth Prentice Your Own Question

Elizabeth Prentice
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 170
Experience:  Managing Attorney for one of the largest consumer bankruptcy firms in America.
70685486
Type Your Bankruptcy Law Question Here...
Elizabeth Prentice is online now
A new question is answered every 9 seconds

Ive just received a disclosure statement from my Leases Attorney

Resolved Question:

I've just received a disclosure statement from my Leases' Attorney advising me of his filing for chapter 11. The statement shows our lease as being "Assumed". Is there any reason I wouldn't want my lease assumed? They are giving me a period of time to reject the assumption if I'd like to. He is current on his rent. The Lease expires in Feb. of 2014.

I've heard that rent is treated differently than other debts. Your thoughts?

I know there is a lot of information you need to opine on this so, I'll give you some pertinent facts.

The Petition date was : Feb.07, 2012
The Disclosure Statement Hearing date is: Dec. 05, 2012
The "Effective Date" has yet to be set.

There is a "ballot for accepting or rejecting the plan" included in the pack of papers. It states my Lessee filed a chapter 11 "plan" on October 30, 2012. Since he doesn't owe me any money, I don't see a need to vote on this plan, right?

So, other than the couple of questions I've posed I'm just looking for some input on the subject, and asking what if anything I should do to protect my interests.

Please let me know if you need further information.

Thank you for your time,

Tim.
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Elizabeth Prentice replied 1 year ago.
I am a bankruptcy attorney and I would be happy to answer your questions. When a Debtor assumes an obligation for a debt (in this case the Lease), his statement of intention typically displays this, as you mentioned. The Debtor's "Assuming the Lease" means that he merely plans to continue making lease payments to you, which I see as a positive thing! However, just because the Debtor stated that he assumed the Lease is not enough to protect your rights as a creditor. I recommend that you do two things: 1) File a Proof of Claim and 2) Send the Debtor's Attorney a Reaffirmation Agreement for the Debtor to sign, and then file it with the Court.

With regards XXXXX XXXXX proof of claim, you will be notified by the assigned Trustee to the case when your deadline to file a proof of claim will be. Typically, the Trustee will also send you the proof of claim form. You must fill it out and attach a copy of the Lease, when you file it with the Court. This preserves your right to receive money owed to you in the event the Debtor defaults.

Secondly, a Reaffirmation Agreement is a type of contract. It states that the Debtor has freely chosen to assume the debt owed (the lease payments still owed to you for however many months), and that should the Debtor default, they (the money owed) will be non-dischargeable. I have seen all types of Reaffirmation Agreements, depending on what they are for, such as cars, mortgages, leases, jewelry, boats, etc. They can be very simple or very detailed. You may want to research online and look at a few samples before you draft one; however, I always recommend an attorney to draft it for you, since they already have forms. Additionally, the Debtor does not have to sign a reaffirmation even if you give him one. This means that if the Debtor defaults, you can immediately pursue your rights to file a Motion to Lift Stay and take back the property if the Debtor defaults.

Lastly, you should review the Debtor's Plan and make sure that he has enough money set aside to be able to pay you the rent. You can chose to object if you wish, if his accounting does not look accurate. You also want to make sure he has listed the proper amount of money he is to continue to pay you each month.

I hope my answer has assisted you, and that you will provide me a positive rating!
Elizabeth Prentice, Attorney
Category: Bankruptcy Law
Satisfied Customers: 170
Experience: Managing Attorney for one of the largest consumer bankruptcy firms in America.
Elizabeth Prentice and 3 other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.
 
 
 

Related Bankruptcy Law Questions