Collecting Post-Petition Rent from Bankrupt Tenants

Now that most states have lifted their moratoria on commercial evictions, tenants strapped by COVID-19 losses are increasingly seeking refuge in bankruptcy courts. But while the automatic stay buys tenants some time to decide whether to reject their lease, tenants in bankruptcy still have to pay their rent within 60 days. At least, that’s how it works in normal times. But since the COVID-19 crisis began, bankruptcy courts have bent the rules to relieve tenants from their so-called post-petition rent obligations.

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