Business Bankruptcy Leasing from someone in Chapter 7

[kailynelliott]

The owner of the building I lease from is going to file chapter 7. I have a couple of questions:

1. Can I renegotiate the lease before they file to lower my rent?
2. We did an owner financing for some equipment with them, what are my options?

Thank you.

 

[Michael Wechsler]

This is an old post but I'll answer it.

1) You can renegotiate anything. You won't be in the building very long and if it's done within 90 days (I think that is the window) of the bankruptcy filing, the lease may be invalidated. It's not like the law is unaware of last minute windfall agreements.

2) You will still owe on your obligations. They don't get extinguished in a bankruptcy.