QUESTION
i lease a commercial building to a business. if he files chapter 11
Asked on Jan 17th, 2013 on Bankruptcy - Mississippi
1 ANSWER
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No, not necessarily. A Chapter 11 is a reorganization case. The Debtor is granted the right to assume or reject the lease post-petition for a period of time (which can be extended by court order). However, during the post-petition period the tenant must remain current with the post-petition rent, and if the Debtor assumes the lease, he/she/it will have to promptly cure the arrearage as part of the assumption process.
Answered on Jan 21st, 2013 at 10:56 AM