If you are renting your home and you are considering filing for bankruptcy, you are probably wondering how it will impact your lease. It is important to confer with a Chapter 7 or Chapter 13 attorney to discuss your options, but below are a few things that may occur:
- Assumption of lease, which means that you continue living in the property and performing your obligations under the lease,
- Assume and assign the lease, which means you keep the lease and assign it to a third-party, or
- Reject the lease, which means that you surrender the premises and terminate your obligations under the lease
Pursuant to Section 365 of the Bankruptcy Code, a tenant has 120 days to inform the court (and the landlord) what he or she intends to do with the lease. If you are unable to make this decision during this time, you may be able to request and obtain a 90 day extension of time to decide whether you will assume or reject the lease. After you have obtained one extension, any additional extensions will likely require consent by your landlord.
If a tenant in bankruptcy fails to assume or reject the lease within the 120 day period and no extension is obtained, the lease is considered to be rejected under the law. Thus, it is important to ensure that you meet these deadlines and keep your court and your landlord informed.
There are many factors that must be considered when you are planning to file a personal bankruptcy. If you have a lease, we can help you understand your options and what would be most beneficial to you.
The “defender of the little guy,” DeLadurantey Law Office, LLC. handles student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.