EXCLUDING BANKRUPTCY PROTECTION IN A LEASE
Rental Management News Clip:
Many of our clients want us to place a clause in the lease that provides in the event the resident files bankruptcy, the landlord will be excluded from the effects of the bankruptcy, and that the resident cannot use the bankruptcy as a way to stop or suspend paying the rent. Sounds like a great idea but it is not possible. If it were possible, then every creditor would have this type of clause in their contracts. These clauses are completely unenforceable. All landlords take a risk that their residents may file bankruptcy, and there is simply nothing you can do about it. If you receive notice that your resident has filed bankruptcy, call your attorney immediately.
Info propvided through the
Monthly e-newsletter of the
Law Offices of Heist, Weisse & Davis, P.A
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