What Landlords Need To Know About Bankruptcy

by | May 14, 2020 | Industry Updates

Filing Mistakes in Bankruptcy Have Cost Landlords
Tens of Thousands of Dollars or More

If you have a tenant or a counterparty in bankruptcy, it is essential that you protect your rights. Key among those actions is taking the right steps to assure that you effectively monitor and timely file papers in the bankruptcy case. As counsel, we can represent you by appearing in the case and filing necessary pleadings, which may include a proof of claim, motions, and negotiating agreements or taking other actions where necessary and appropriate. As each case, claim and client’s position is different, it is essential that your interests and rights are evaluated, notices and pleadings are reviewed, claims are filed and your rights are protected.

Notices are often generic and may be confusing. It is difficult to tell if you need to file a claim, respond to a pleading, file an objection or hire a lawyer. We have seen cases where staff have made the wrong choice, and the owner of the property has paid the price by losing their right to receive payment of tens of thousands of dollars from a debtor.

In an effort to save money, a client will often have their staff, intern, accountant or management company file a proof of claim or review documents received from the bankruptcy court without realizing how important a notice or pleading is and, as a result, inadvertently waive a claim or their rights to receive payment. When we are subsequently contacted, their rights have already been greatly impaired, and they are left with costly options.

Being a creditor in a bankruptcy case can be stressful, and bankruptcy notices can be complicated. Let Rosenberg & Estis represent you. Call or email us today.