Legal Question in Real Estate Law in New Jersey

Tenant's filed for Bankruptcy protection

I have a written lease with 2 co-tenants & guarantor. T's failed to pay rent for sev. consecutive months. I filed an action to disposses. Tenant A filed for Chapt. 8 protection. Disposses case was stayed. L/T Judge will not let me proceed against Tenant B or guarantor w/out Fed. Court lifting the stay. Ts resumed paying post filing rents. 1 yr lease will expire shortly. At Creditors meeting, Trustee suggested (forcefully & on the record) Tenant A create a special class for me to be repaid first (other creditors are large corps). Tenant A agreed & declared intention to vacate at end of term (also on the record). Now lease will expire in less than 30 days, & Ts intend to holdover. I have not offered to renew the lease on basis of chronic non-pay. What can I expect? Am I within my rights to refuse to renew? If they holdover, will I have to lift the stay before attempting to dispossess them for holding over? What if they do not create a special class for me in the reorganization plan? If I give them a new lease, & they stop paying, will that same stay prevent me from proceeding against tenants in L/T court again? Please help me!!!


Asked on 4/18/02, 8:03 pm

2 Answers from Attorneys
Savyon Grant Law Office of Savy Grant

Re: Tenant's filed for Bankruptcy protection

You can file a motion in the bankruptcy court for relief from the automatic stay. When the motion is granted you can go back to landlord tenant court.

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Answered on 4/19/02, 8:40 am
Bruce Gudin Ehrlich, Petriello, Gudin & Plaza Esqs.

Re: Tenant's filed for Bankruptcy protection

You must file a Motion to Lift the Automatic Stay. We can assist you if you would like. Where was the bankruptcy filed? Newark, Camden? Where is the property located.

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Answered on 4/19/02, 11:22 am


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