Assumption Or Rejection of a Lease in Bankruptcy
In Bankruptcy, the question of whether a lease can be assumed or rejected depends on whether the debtor intends to assign it. The Bankruptcy Code allows the debtor to assign a lease, provided that he has cured all arrears and is able to provide adequate assurance of future performance. Find out: scura.com
You Can Retake Possession Of Your Property
A lease that has not been assumed in time will be deemed rejected under the Bankruptcy Code, and that will mean that the lease will end. This can happen either through affirmative action on the part of the debtor or because the assumption window has passed. Either way, rejection is effective as of the date of bankruptcy, and the landlord may retake possession of the property. In this situation, the landlord may seek breach damages, which will run back from the date of the bankruptcy filing.