Transactional

By: Transactional Department

No matter what the lease says, the mere filing of a bankruptcy by a tenant does not terminate the lease or entitle a landlord to evict the tenant. That being said, if a residential tenant files bankruptcy they are always required to continue paying rent. If they stop paying rent the landlord usually needs to file a motion in bankruptcy court to be allowed to evict the tenant. However, the 2005 changes to the bankruptcy code created an exception to when the automatic stay is imposed for some residential lease matters. If the landlord has received a judgment for possession before the tenant filed bankruptcy, then the automatic stay may not apply and the landlord may be able to continue the eviction without leave of the bankruptcy court. In some instances the tenant will have the ability to file a certification and deposit with the bankruptcy court, which if done timely and properly, can impose the automatic stay for a period of 30 days. Within those 30 days the Debtor would be required to pay all delinquent rent to maintain the automatic stay and prevent eviction. However, if the judgment for eviction is based solely on the expiration of the tenant

By: Nancy J. Glidden

Please see our blog on financial responsibility of the members of a closely held LLC.

Please contact Nancy Glidden for more information.

By: Transactional Department

Are you a business owner who has had a client go through the bankruptcy process? Have you been sued by the Bankruptcy Trustee to return your money to the Trustee? For more information on your rights to recover your money from the Bankruptcy Trustee, read this article that is posted on our website.

For more information on the bankruptcy process, please contact our office.

By: Transactional Department

Not all debts are dischargeable in bankruptcy. The key is to know which claims can be exempted from discharge and then what steps you, as a creditor, need to take to preserve your non-dischargeable claim. For a primer on the steps you should take, click here.

For more information, please contact our office.

By: Transactional Department

With the current economy, more and more people are filing bankruptcy. If you are a bank or business owner then it is likely you have had to deal with a client or customer bankruptcy at least once. If you haven’t, you probably will have to in the months to come. So what should you do when a customer or client files bankruptcy?

Be sure to review the full article on bankruptcy.