My name is Ron Drescher. I’m an attorney practicing
bankruptcy and creditors’ rights in Maryland, Delaware, Pennsylvania, and Virginia, and
today I want to answer the question, “I have this lease that is killing my business. Can
I get out from under it in bankruptcy?” Well the answer to that question is yes. One of
the primary benefits of Chapter�11 or really for that matter any other chapter of the bankruptcy
code is that you can do what’s called rejecting leases. You can also reject contracts under
most circumstances. What that means is you get out from under that lease or contract
that you find burdensome and all that the leaser or landlord has is an unsecured claim
for the damages that are arising as a result of that breech. Sometimes that gives the landlord
a lot of power in your bankruptcy but many times you’re going to file a Chapter�7 individual
bankruptcy and you’re going to get out from under the personal guarantees or other damages
or other claims that might arise from the rejection of that unexpired lease of real
property or of personal property. So rejection of these leases is an extremely valuable benefit
in Chapter�11, Chapter�7 or Chapter�13 bankruptcy. My name is Ron Drescher. I’m an
attorney practicing bankruptcy and creditors’ rights, and if you have a question about a
burdensome lease that you’re trying to get out of, please pick up the phone and call
me. I would love to hear from you.