June 20, 2010
What are my rights as a Landlord with my tenant filing Chapter 11 Bankruptcy?
LHill asked:
I am leasing commercial space to a National tenent, who just filed Chapter 11 Bk. The business is for sale, and our lease was rejected and not included in part of the sale. The space is almost vacant other than a few structures and pieces left behind. How long do I have before I can lease it out again and take possession?
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I am leasing commercial space to a National tenent, who just filed Chapter 11 Bk. The business is for sale, and our lease was rejected and not included in part of the sale. The space is almost vacant other than a few structures and pieces left behind. How long do I have before I can lease it out again and take possession?
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Comments on What are my rights as a Landlord with my tenant filing Chapter 11 Bankruptcy?
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If the bankruptcy court has voided the lease, then presumably the tenant is no longer claiming any right to use and occupy the premises. I would send a letter to the tenant asking them to retrieve their remaining possessions, which you should itemize, or, alternatively, seek their permission, in writing of course, to dispose of the same.
At the same time, you should ask them to sign a letter surrendering all their rights to use and occupy the premises to you as of the effective date that the lease terminated. That should be sufficient proof (if any additional proof is even required) to any realtor you might retain to re-let the premises that the space is immediately available to prospective tenants.
Good luck.