First of all, I just want to thank all the attornies in this web site. Y'all have been a lot of help! Does the tenant or the trustee rejects the lease most of the time with a residential lease? What is the average time it takes to discharges a Chp 7?
1 Answer from Attorneys
The tenant cannot assume or reject a residential lease in Chapter 7. Only the trustee can, and the trustee would only do it in extraordinary circumstances, where the lease was so far below market that he could assume it and assign it to another tenant for a profit. Theoretically possible, but practically not.
As long as the trustee does not assume and assign the lease (and thus rejects it), the tenant retains rights under the lease, but has to keep paying. If your tenant has defaulted in payment, you can evict, just as without the bankruptcy, but you first need to get stay relief if the stay is still in effect. The stay remains in effect until discharge (usually a few days past 60 days after the meeting of creditors), unless you get relief from the stay. Once you have stay relief you can go into state District Court on a complaint for possession to evict the tenant, and you can include claims for post-petition use and occupancy (rent), but not for any rent that accrued pre-petition.
Related Questions & Answers
My tenant went through the Meeting with Creditors. How do I find out if she has... Asked 7/22/11, 12:28 pm in United States Maryland Bankruptcy Law
My tenant filed chp 7 and has not paid rent afterward. I missed the meeting with... Asked 7/22/11, 6:41 am in United States Maryland Bankruptcy Law
My tenant in Germantown, md filed bankruptcy chp 7. It has been 60 days and she has... Asked 7/22/11, 6:33 am in United States Maryland Bankruptcy Law
My tenant filed a bankruptcy chp7. It has been 60 days and she hasn't reject nor... Asked 7/22/11, 6:28 am in United States Maryland Bankruptcy Law
My tenant has filed bankruptcy chp 7 in Germantown, MD. She has not reject nor... Asked 7/22/11, 4:43 am in United States Maryland Bankruptcy Law