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!