Are you a commercial landlord concerned about collecting rent from a tenant who has filed Chapter 11 bankruptcy? The United States Bankruptcy Code provides rights to commercial landlords to ensure they are paid, even after a tenant has petitioned the court for bankruptcy and the automatic stay has been filed.
At the Juras Law Firm, PLC, Chapter 11 landlord rights attorney Irena Juras has extensive experience representing landlords in Chapter 11 bankruptcy proceeding. Our attorney skillfully protects the rights of landlords when their tenants have filed bankruptcy. contact us online today if you are a commercial landlord who would like more information.
Under Section 365(d)(3) of the U.S. Bankruptcy Code, commercial tenants are required to pay their lease obligations after they petition for bankruptcy and until they reject or assume the lease. The landlord is entitled to an administrative expense claim for the period between the petition date and the date the tenant rejected the lease. The commercial tenant can request to have the lease obligations postponed for 60 days, which means the tenant could occupy the premises without being required to pay rent during that time period.
Our law firm can successfully assist you in compelling your tenant to pay rent or reject/assume the lease. It may be necessary to file a motion with the bankruptcy court. This can be a time-sensitive matter, as any time that goes by without rent payments can have a negative impact on the landlord’s finances. If the tenant is unable to or refuses to pay rent, the court can enter an order for the tenant to reject the lease. When a tenant rejects a lease, the landlord can still seek to collect past-due rent as well as seek out a new tenant.
The Juras Law Firm, PLC, offers consultations to discuss your bankruptcy concerns. If you are a commercial landlord seeking protection under bankruptcy laws, call us at (480) 425-2009. You can also contact us online.
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