Commercial - Tenant rights when landlord file bankruptcy

[JimmyNeutron]

Hi,
I was wondering what rights do I have as a tenant in a commercial real estate(I'm renting) when my landlord files for bankruptcy or about to go bankrupt?

I'm completely new to the bankruptcy policy, especially commercial, but here's what I know so far.

The county superior court has assigned a "Receiver" to handle the property, all rents and moneys related to this real estate property.

I understand I need to continue paying my rent, but do I have a right to get out?

My lease was signed by my wife and I as individuals, NOT corporate, and had a personal guarantee. However, in the lease, it says refer to "Exhibit G Form of Personal Guarantee" and this form was NOT signed by my wife and I or the landlord.


1. Does this mean there is no personal guarantee?
2. Can I ge out of my lease if and when my landlord does file for bankruptcy? 3. When the court assigns a court receiver to handle the property, does this mean the landlord is in bankrupt or about to go into bankrupt?

Thanks!

[HHM]

Are you sure he is in bankruptcy...

Bankruptcy is in Federal Court and you mentioned County Superior Court and a Receiver, which is not bankruptcy related.

To answer your lease signing question, if you signed it as individuals, you are individually liable for the lease. Think about it, how do you personally guarantee a debt that you are personally responsible to pay.

[justbroke]

I am also confused as to the actual status. Perhaps the owner died and it's a Probate issue? Could be so many things...

[JimmyNeutron]

Are you sure he is in bankruptcy...

Bankruptcy is in Federal Court and you mentioned County Superior Court and a Receiver, which is not bankruptcy related.

Hmmm...ok. Then I need to figure out what's going on. All I see is the creditor whom the landlord borrow money from is taking the landlord to court.

The landlord is named as the defendant and the landlord's creditor as the plaintiff.

If it isn't bankruptcy, does anyone know what's going on then? Court gave the court appointed receiver full power to the property in question, handles all the moneys, and landlord and employees of the landlords are not allow back on. Receiver can also change all locks on the premises.

Thanks again!

P.S. In the meantime, once I get home, I'll read over the court paperwork again and confirm if it is county superior court or federal court.

[justbroke]

Sounds like a lawsuit, and that the building is some sort of pledged collateral. The Creditor may not have started a foreclosure action, but just simply is pursuing this in Superior Court (due to the amount).

I would stay on top of this. Worse case, is that the Creditor liens the property (if they already haven't), and forces a foreclosure. However, in this market, the Creditor, unless he's a first position lienholder, isn't probably going to attempt that.

[HHM]

Ok, basically, your landlord is being sued by someone that landlord owes money too and that person must be really pissed off and the landlord must have done something bad/odd for the court to appoint a receiver. This is a standard civil suit that is taking place in your local County Court. Basically, there is nothing you need to do, and yes, you need to keep making your rent payments. Basically, the receiver steps into the shoes of the landlord, thus, he would have the power to evict you for non-payment of rent. Right now, you should contact the receiver and see what is going on.

[JimmyNeutron]

Thanks everyone! Yeap, its a superior court. Guess it hasn't move to bankruptcy yet.