Legal Question in Bankruptcy in Maryland

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?

Asked on 7/22/11, 3:44 pm

1 Answer from Attorneys

Daniel Press Chung & Press, P.C.
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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.

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7/22/11, 7:07 pm

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