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Do bankruptcy protection provisions protect you if your tenant goes bankrupt?

November 11, 2017

Do bankruptcy protection provisions protect you if your tenant goes bankrupt?


The answer is - NO

You may not be able to rely on all the remedies in your lease if your tenant files bankruptcy.For example, the bankruptcy section of your lease may provide that the tenant filing a bankruptcy petition constitutes an event of default. 
In reality, however, provisions like this are often unenforceable under the Bankruptcy Code.
At times like these, your best bet is to turn to experienced bankruptcy counsel.

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