Tenants’ Rights When Landlord Files Bankruptcy

31 Oct Tenants’ Rights When Landlord Files Bankruptcy

What are a tenant’s rights when a landlord files for bankruptcy protections? Here’s good news for the tenant.

A renter keeps all rights under a lease when a landlord files a bankruptcy case. The landlord, and the landlord’s bankruptcy trustee, cannot interfere with the use, possession, or quiet enjoyment of the apartment or premises. The amount and timing of payments remains the same. The tenant keeps all existing rights of renewal and extension. This was the ruling in In re Haskell, L.P., 321 B.R. 1 (Bankr.D.Mass. 2005), based on 11 U.S.C. 365(h)(1)(A)(ii).

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L. Jed Berliner practices exclusively in consumer bankruptcy, foreclosure defense, and related consumer protection litigation such as credit card defenses and suing debt collectors. He established his Springfield, MA practice in 1988. Attorney Berliner is a regular and active contributor to the Bankruptcy Law Network, the Bankruptcy Roundtable, and the National Association of Consumer Bankruptcy Attorneys, three specialized consumer bankruptcy forums on the Internet, and is an informal mentor to regional practitioners. He is recognized by his peers as an expert in consumer bankruptcy issues. He thoroughly enjoys being rated "excellent" in his client surveys.

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