• Bankruptcy Implications for Commercial Landlords
  • April 5, 2013 | Author: Brian J. Hufnagel
  • Law Firm: Forchelli, Curto, Deegan, Schwartz, Mineo & Terrana LLP - Uniondale Office
  • When a commercial tenant files a chapter 11 bankruptcy case, a landlord should take steps to protect its rights. However, the automatic stay temporarily halts a landlord's efforts to collect past due rent and to pursue eviction proceedings. The tenant is required to pay monthly rent going forward, on time in accordance with the lease, and to pay pro-rated rent for the month of the bankruptcy filing. If the tenant fails to pay post-bankruptcy rent when due, the landlord will be able to obtain relief from the automatic stay to commence or resume state court eviction proceedings.