Not uncommonly, the timing of a commercial tenant’s bankruptcy filing will correspond with a landlord seeking to evict the tenant or institute foreclosure proceedings. What is the effect of a dismissal requested by a commercial debtor after the landlord ... Read full article
With the RadioShack Corporation bankruptcy action affecting the rights of many commercial landlords, it is important to determine ways that landlords can protect themselves during the course of the bankruptcy action. First, requiring a third-party ... Read full article
Security deposits are considered property of the bankruptcy estate, and as such, are generally required to be returned to the debtor. Even so, landlords are permitted in certain instances to setoff their rejection damage claim against the security ... Read full article
Landlords may be able to recover attorneys’ fees incurred when a debtor-tenant seeks to assume the lease, or assume and assign the lease to a third party. To recover attorney’s fees, however, the landlord must meet several criteria. First, the lease ... Read full article
Section 365(d)(3) of the Bankruptcy Code requires the debtor-tenant to “timely perform all the obligations …. under any unexpired lease of nonresidential real property” until such time that the tenant assumes or rejects the lease. If a tenant files for ... Read full article
In conjunction with assuming the lease, the Bankruptcy Code allows the debtor-tenant to assign the lease to a third party. The party who is assigned the lease must provide the landlord with adequate assurance that it can meet the financial obligations ... Read full article
Assumption of the lease is permissible even if the terms of the lease expressly prohibit assumption. Section 365 of the Bankruptcy Code requires a debtor-tenant to meet certain criteria in order to “assume” a lease. First, and most importantly, the ... Read full article
If the debtor-tenant seeks to terminate and surrender the lease, that is “reject it”, the landlord may be entitled to a “rejection damage” claim. A landlord is not entitled to the full amount of unpaid obligations for the balance of the lease. Instead, ... Read full article
The automatic stay is one of the most powerful protections provided to debtors in a bankruptcy proceeding. The stay acts as an injunction that prohibits creditors (including landlords) from commencing or continuing any proceeding against the debtor which ... Read full article
