Section 365 (Executory Contracts and Leases)
Section 365: governs assumption, rejection, or assignment of contracts/leases in bankruptcy. Assume: keep + cure defaults. Reject: breach (landlord capped damages: greater of 1 year or 15% remaining, max 3 years). Assign: transfer + cure + adequate assurance. Deadlines: nonresidential RE leases: 120 days (extendable 90). Ch. 7: 60 days. Missed deadline = deemed rejected.
Options
- Assume: keep and cure defaults
- Reject: breach with capped damages
- Assign: transfer to third party
FL Commercial Leases
- Tenant: assume, reject, or assign
- Landlord: Section 365(h) tenant protections
Deadlines
- Nonresidential RE: 120 days + 90
- Chapter 7: 60 days
- Missed = deemed rejected
Related Terms
- Lease — Rental agreement
Barnes Walker Bankruptcy
Barnes Walker’s attorneys handle lease assumptions in Florida. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC