Law Office of Timothy E. Wilfong, LLC

You Deserve a Fresh Start - Phoenixville, PA


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Law Office of Timothy E. Wilfong, LLC

20 S. Main Street, Phoenixville, PA 19460



Assumption of Lease Agreements 
 
Should I Assume a Lease Agreement


 
Protect your Credit Score
 
 

Law Office of Timothy Wilfong

21 South Main Street

Phoenixville, PA 19460

610-247-1249

timwilfong@aol.com

Should I Assume a Lease Agreement

If a lease is not assumed in the Bankruptcy, then it is deemed rejected.  Technically, a lease being rejected means that the lease is not being assumed by the bankruptcy estate and; as a result, the remaining balance owed on the lease will be discharged. This includes vehicle leases and apartment leases.  Our firm does not recommend assuming a lease, because if a lease is assumed and then the lessee later defaults on the lease, then the lessee will be liable for the remaining payments on the lease agreements.  In other words, if a person still had 8 months left on his or her lease, at 300 per month, and defaults on the monthly payments, then the vehicle will be repossessed and the individual will owe the $2,400.00. 

 

Unfortunately, the most likely affect of not assuming a vehicle lease is that the vehicle will be repossessed due to the bankruptcy, even if you intend to continue to make payments.  There is a chance that a vehicle lesser may not repossess the vehicle, however that cannot be guaranteed.  If the leased vehicle is your only source of transportation and you need to assume the lease, then you must be aware that if you default on the lease agreement, then you will owe the remaining balance on the lease. 

For apartment leases, the rejection of a lease does not discharge you of the responsibility to pay your ongoing monthly rent. Most landlords will continue to honor the apartment lease even though technically, the liability for future payments has been discharged.  Even if the landlord considers the lease broken, under Pennsylvania law you will now be in a month-to-month lease or be considered a hold-over tenant, and will be responsible to make your monthly rent payments, otherwise you will be evicted by the landlord.  

 

Please call for a free, no obligation, initial consultation with a bankruptcy lawyer to evaluate your specific financial circumstances to see if it makes sense for you to file for Bankruptcy at (610) 935-5555.  To ask a question or schedule an appointment please click here.

Law Office of

Timothy E. Wilfong, LLC

20 S. Main Street

Phoenixville, PA 19460

Phone-(610) 935-5555

Fax-(610) 680-3910

timwilfongesquire@gmail.com