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Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31010
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Landlord filed Chapter 7 bankruptcy, but didnt include the

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Landlord filed Chapter 7 bankruptcy, but didn't include the commercial lease I rent from her. Concerned that she may lose the bldg, even though not included in the bankruptcy. Is there anything I can do to protect myself? File something in Bnkrtcy Ct?

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.

Do you know if your landlord has a mortgage lien on the real estate you lease, or is it owned free and clear?

Customer: replied 3 years ago.

No, she has a mortgage lien. Something funny's going on because she got the rent one day late due to New Year's and has filed for dispossessory. I've always made sure payment was postmarked on or before the due date.

Ok. Thanks for the information.

The landlord or tenant (or actually, their trustee) can either:

  • Assume the lease, that is, allow the lease to continue in effect,
    or
  • Reject the lease, which essentially terminates or cancels the
    lease

If your landlord assumes the lease, you have to continue to perform all covenants or
"promises" you made in the lease.

If your landlord were to reject the lease, then he would be liable for breaking the lease early. If the landlord-debtor rejects the lease, as you can:

  • File a claim in the landlord's bankruptcy for damages resulting from the
    rejection and early termination of the lease OR
  • Stay on the property for the remainder of the lease and off-set or reduce
    your rental payments by any damages you suffer as a result of the landlord's
    failure to provide services under the lease, such as power, heat and trash
    disposal

IF your landlord hasn't rejected the lease or included the lease in bankruptcy, you can proceed with business as usual. IF the landlord were to try and reject the lease, you would be able to file a proof of claim against the landlord as a creditor for the obligations remaining under the lease.

If the landlord were to default on the mortgage payment, you would be exposed regardless of whether the landlord was in bankruptcy. Thus, the filing should not affect you as long as you stay current on your lease and as long as the landlord stays current on his mortgage.

Roger and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.

Thanks so much. I had done some research on line, but this clears up my obligations.

No problem and good luck!

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