Neon, KY asked in Bankruptcy for Kentucky

Q: If a coal company files bankrupt, are they still obligated to fulfill a lease agreement?

In the agreement, they suppose to deed me 8 acres of land once the final bond phase is up. They are currently going through the bankrupt.

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2 Lawyer Answers
Nick Curtis Thompson
Nick Curtis Thompson
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Louisville, KY
  • Licensed in Kentucky

A: No! In the bankruptcy petition the Debtor should have announced his option to pay the lease and accept it or reject it. If this is a lease and the bankruptcy was filed during an eviction proceeding the debtor may deposit any overdue funds with the court and accept the lease but immediately cure any default. The Debtor can "force" the lease upon the landlord but the Debtor has to bring the lease current. If not then the landlord can proceed with the lease eviction.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY
  • Licensed in Kentucky

A: They can accept or reject the lease. You need a bankruptcy Atty to look into this for you ASAP!

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