Author: Nicholas Ortiz, Boston Bankruptcy Attorney

23 Oct Assuming Defaulted Leases in Chapter 13

Section 1322 of the Bankruptcy Code allows a debtor to assume an unexpired lease, such as for an apartment or car, in their Chapter 13 case. This right is subject to the provisions of Section 365 of the Code, which provide:
If there has been a default in an executory contract or unexpired lease of the debtor, the [Chapter 13 debtor] may not assume such contract or lease unless, at the time of assumption of such contract or lease, [he]-- (A) cures, or provides adequate assurance that [he] will promptly cure, such default [other than, in general, a nonmonetary default]; (C) provides adequate assurance of future performance under such contract or lease.
I've edited the section to highlight the point I'm making in this article, which is
Read More