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Bankruptcy Law/Tenant rights when Landlord files bankruptcy

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Expert: - 10/23/2007


Question
My girlfriend and I signed a year lease in August, 2007 to rent a single family house in Sacramento, CA. We have just received notice that the owner of the property is filing bankruptcy and that we will have to vacate as early as December 15th. We love the house and the location and do not want to move, especially because we just moved in, this of which included moving expenses and time. I am wondering what our rights are in this situation, considering that we have signed a valid year lease. Also, do we have rights to have our lease honored by the mortgage holder or whoever assumes ownership of the house after bankruptcy? Thank you.

Answer
You really need to consult with a landlord/tenant attorney on this, but as far as the bankruptcy goes you would have a claim for whatever the value is of the time left on the lease, so assuming there are assets being distributed in the case, you should file a proof of claim for that amount.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

Experience

Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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