24 Mar When Should I Assume A Lease In Bankruptcy?
One of the features of bankruptcy is the ability to reject a residential lease. But what if you want to assume an unexpired lease?
Obviously, you must live somewhere, so consider the following factors when making this decision:
- Can you find a better deal on rent than you are currently paying?
- What are the terms of the lease? If you decided to assume the lease, you cannot pick and choose the terms you want to honor. You have to take the good with the bad.
- What will it cost to move? Moving costs including deposits can be significant out of pocket expenses!
- Are you in default on the lease? In order to assume a lease the debtor must be able to show that he is able to either cure the default or prove that the default can be cured in a prompt manner.
- Has the lease already been terminated? If the landlord has obtained a judgment of possession for the leased property before your bankruptcy is filed it may be too late to cure the default.
Your attorney can help you in making the decision on whether or not to assume a lease.
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