When Should I Assume A Lease In Bankruptcy?

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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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

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