How are Leases Treated in Bankruptcy?
Bankruptcy Code Section 365(a) states the debtor may assume or reject any executory contract or unexpired lease. This rule applies to an apartment lease, an automobile lease, or any other variety of lease. The debtor must either continue paying the lease according to its terms or reject the lease, or surrender the object of the lease.
If the debtor is behind on the lease, he must promptly cure such default. This means he must bring the lease current according to the terms of the lease.
For more information about leases in bankruptcy, contact the experts at Jay Weller Legal Group for a consultation today.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_column_text][vfb id=3][/vc_column_text][/vc_column][/vc_row]