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Closed 15-Year Lease, But Landlord Filed For Bankruptcy.

Closed 15-Year Lease, But Landlord Filed For Bankruptcy.

Postby Vitale » Fri Feb 07, 2014 2:24 pm

I am a tenant that possesses a laundromat and closed for a 15-year lease in '09, but lately my landlord filed for bankruptcy. It's not yet within the state-of foreclosure but does the courtroom nevertheless recognize the rent? What're my choices? May I still officially keep consitently the remaining 13-year lease with the brand new landlord? I reside in california.
Vitale
 
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Signed 15 Year Lease, But Landlord Filed For Bankruptcy.

Postby Raul » Sat Feb 08, 2014 10:10 am

I came across the next:

A LANDLORD might not unilaterally end a professional lease by filing bankruptcy. Under Section 365(h) of the Bankruptcy Code, a tenant whose landlord has filed bankruptcy has the choice to possibly handle the lease as terminated and leave the area or even to stay static in ownership (and continue paying the book) for the total amount of the lease period (including any expansion alternatives, if regular practiced by the tenant). There are lots of subtle nuances and exceptions to these fundamental guidelines and an event into a professional lease must seek the assistance of competent lawyer before taking action to eliminate that lease.

365(h) of the bankruptcy rule reaches:
http://www.law.cornell.edu/uscode/usc_sec_11_00000365----000-.html
It is best to consult with a bankruptcy lawyer of your. He'd have the ability to counsel you of any particular process necessary for the safety of one's pursuits.
I'd believe, though, when the building were obtained by the bank in foreclosure, then your rent might be ended by the bank. There might be choices there, but the financial institutionis prone to manage them.
Raul
 
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