Hi - my name is XXXXX XXXXX X'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?
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:
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:
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.
Thanks so much. I had done some research on line, but this clears up my obligations.
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).