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What are my tenant rights if our landlord files for Chapter 11?
Anonymous3 views2 answers
I just received notice that our office building landlord filed for Chapter 11. In AZ, what tenant rights do we have? Should I respond to the notice as a creditor or wait for further notice? Could our lease be assumed or ignored? What time frame(s) should I prepare for with the Chapter 11 and to move to another office?
Peter Walter WestonBankruptcy AttorneyBellaire, TX ·
You will receive notices in a chapter 11, because you appear to be a creditor of sorts, since you are entitled to receive lease space for the rent you pay, under an executory contract.
The landlord debtor will notify you of its plans in the case, and you can obtain some indication of its intent, by attending the creditor meeting, and by reviewing its schedule G, to see if it intends to assume or reject your lease.
The debtor is often trying to keep you as a tenant, so it may pay its mortgage, so you will likely enjoy some preferential treatment, provided you continue to pay the rent.
To answer more questions, usually requires more information about the case, and more time for the case to develop.
There will be a reorganization plan submitted, usually within 6 months, during which time the lease may remain unchanged.
You can retain a bankruptcy attorney to represent your interests, and to monitor the notices that you receive. You probably should plan for continuation, according to the terms of your lease, unless there is a rejection or termination of the lease.
Your rights as a tenant remain under the lease, except that you are also subject to bankruptcy rules.