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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Landlord-Tenant
Satisfied Customers: 10568
Experience:  Commercial and residential leases in NY & NJ & US
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My commercial tenant just filed bankruptcy on his lease for

Customer Question

My commercial tenant just filed bankruptcy on his lease for the future months rent. Can I make him leave now ?
JA: What state are you in? And has anything been officially filed?
Customer: Georgia and yes
JA: What are the terms of the lease? Any issues related to maintenance or upkeep?
Customer: No. he just can't make the rent. He's behind two months but his amount of bankruptcy is for the future rent.
JA: Anything else you want the lawyer to know before I connect you?
Customer: I don't think so
Submitted: 5 months ago.
Category: Landlord-Tenant
Expert:  Richard - Bizlaw replied 5 months ago.

Hello, my name is ***** ***** I will try to help you. Please remember I just report or interpret the law, so the outcome may not be what you hoped for.

Once the tenant files bankruptcy he has 4 months to assume or reject the lease. This can be extended for up to 90 days without the landlord's permission. If the lease is assumed, the tenant must cure all defaults and show it can meet its obligations going forward. If it rejects the lease the tenant has to move out. The landlord can file a claim for all past and future rent due which are treated as unsecured claims. The landlord's claim for future rents is capped at the greater of one year's rent or 15% of the remaining lease term. You will be able to apply any security deposit or letter of credit you hold against the debt up to the amount of the capped claim.

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