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When either a landlord or tenant files for bankruptcy, there are two things that can happen to the lease. The landlord or tenant (actually, the trustee) can either: assume the lease, that is, allow the lease to continue in effect, or. reject the lease, which essentially terminates or cancels the lease.
by FreeAdvice staff. by FreeAdvice staff. Under BAPCPA, if a residential landlord already has a judgment for possession by the time the tenant files for bankruptcy, the automatic stay does not prevent the landlord from continuing to evict the tenant 30 days after the petition was filed.