A lot of individuals filing for bankruptcy are also renters and may also have storage units. The bankruptcy process gives these individuals
the ability to assume or reject unexpired leases. Assuming the lease means that the individual chooses to continue paying according to the agreement already in place. Effective rejection of a lease means that the individual is no longer responsible under the lease.
There are several factors to consider when making your decision.
1. Has the lease already been terminated? Is it too late to cure the default?
In Maryland residential tenants have up and till the eviction process starts to cure a default.
2. Can you find a better deal on rent than you are currently paying?
Keep in mind that after filing bankruptcy your credit will take a hit and it will be more difficult to get an apartment lease so the decision to reject a lease should not be entered into lightly.
3. What are the terms of the lease? If you decided to assume the lease, you cannot pick and choose the terms you want to honor. You have to take the good with the bad.
4. What will it cost to move? Moving costs including deposits can be significant out of pocket expenses!
5. Are you in default on the lease? In order to assume a lease the debtor must be able to show that he is able to either cure the default or prove that the default can be cured in a prompt manner. Therefore, you have to have funds necessary to pay the landlord the rent arrears or at a minimum set up an acceptable payment plan with the landlord.
Your attorney can help you in making the decision on whether or not to assume a lease. Maryland residents looking for bankruptcy advice please call me today for a free consultation. Joe Githuku. 410-849-9529.
This article is provided for informational purposes only and should not be construed in any way as legal advice. This article does not create an