Refers to banks, leasing companies, auto financing companies, and property owners right in bankruptcy. When a creditor’s real personal property falls into bk proceedings the creditor must ask the bk judge to lift the Automatic Stay. Once granted, the creditor may proceed and or return to state court litigation to recover its property in which the borrower or lessee had defaulted.
A commercial lease falls into default by a lessee pursuant to 11 U.S. Code 365 Executor Contracts and unexpired leases. The lessee may assume or reject the unexpired lease of the debtor. By assume, the debtor must address past due rent and remaining rent on the lease and pay administrative expenses.
Finally, if a debtor files in bad faith or with an unrealistic plan for reorganization, then the creditor may move for expedited or even emergency relief.