Not uncommonly, the timing of a commercial tenant’s bankruptcy filing will correspond with a landlord seeking to evict the tenant or institute foreclosure proceedings. What is the effect of a
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Commercial Landlords
Howry Creditors Commitee Appeals Decision Providing Priority Status to Landlords
In a prior post, we discussed the ruling of the Northern District of California Bankruptcy Court in the In re Howrey LLP case, whereby the Court found that claims…
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Ten Things Every Commercial Landlord Should Know About a Tenant in Bankruptcy
With several significant recent bankruptcy filings such as RadioShack and Saladworks, tenant bankruptcies become a greater risk for commercial landlords. Yet some landlords are not familiar with the rights provided…
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RadioShack Corp. Bankruptcy: How can a landlord protect itself prior to and during bankruptcy?
With the RadioShack Corporation bankruptcy action affecting the rights of many commercial landlords, it is important to determine ways that landlords can protect themselves during the course of the bankruptcy…
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Can the landlord apply the tenant’s security deposit to the landlord’s claims?
Security deposits are considered property of the bankruptcy estate, and as such, are generally required to be returned to the debtor. Even so, landlords are permitted in certain instances to…
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When can a landlord recover attorneys’ fees from a tenant in bankruptcy?
Landlords may be able to recover attorneys’ fees incurred when a debtor-tenant seeks to assume the lease, or assume and assign the lease to a third party. To recover attorney’s…
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How does a landlord recover its administrative rent claim?
Section 365(d)(3) of the Bankruptcy Code requires the debtor-tenant to “timely perform all the obligations …. under any unexpired lease of nonresidential real property” until such time that the tenant…
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What are the landlord’s rights when the tenant assumes and assigns the lease to a third-party?
In conjunction with assuming the lease, the Bankruptcy Code allows the debtor-tenant to assign the lease to a third party. The party who is assigned the lease must provide the…
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What are the landlord’s rights when the debtor-tenant decides to assume the lease?
Assumption of the lease is permissible even if the terms of the lease expressly prohibit assumption. Section 365 of the Bankruptcy Code requires a debtor-tenant to meet certain criteria in…
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What are a Landlord’s “Rejection Damages?”
If the debtor-tenant seeks to terminate and surrender the lease, that is “reject it”, the landlord may be entitled to a “rejection damage” claim. A landlord is not entitled to…
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