Assume or Reject a Lease when filing Bankruptcy
I had a client in here the other day, and I requested the address for her landlord since she is renting her house. She was reluctant to provide me the information and didn’t understand why I needed it. One of the Schedules that must be filed with the court lists any Executory Contracts or Leases the Debtor is involved in. If it is left blank, this is indicating that the Debtor is not involved in a lease of any kind (residential, storage, etc). Obviously, if the Debtor is involved in a lease and fails to disclose it to the court she is filing false paperwork.
Another reason, the Debtor has the option to assume or reject any lease they are involved in. In order for the Debtor to be able to this, she must notify the other party to the lease. In my Debtor’s case, she is behind on her lease payments, so she needs to be able to notify her landlord because he is threatening to evict her. Since she is in a bankruptcy, he cannot evict her without permission from the Bankruptcy Court. However, if the landlord is never notified, there is no way for him to know not to start the eviction process.
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