When a commercial real estate project has not gone as planned, bankruptcy options may be able to help out. There are different types of bankruptcy protections and different bankruptcy options to consider and many can help when a commercial real estate project has fallen under water.
Commercial real estate can be a challenging yet rewarding business to be in and legal resources help to protect valuable interests that are part of a commercial real estate transaction. The parties to a commercial real estate transaction should be familiar with the legal resources available to help them accomplish a successful transaction and guide them through the different phases of the process.
There are many aspects of the commercial real estate process that are important to be familiar with. In addition, there are a variety of parties typically involved in a commercial real estate transaction which is why each should understand the legal protections available to them and the legal processes associated with a commercial real estate transaction.
For owners of commercial retail property it can be frustrating when tenants abruptly close up shop and file for bankruptcy. Many times these situations result in months of lost rental income for the property owner. If the tenant files a strait bankruptcy such as Chapter 7, a rental space cannot be leased to a new owner until a bankruptcy discharge is issued. This can take three to four months in a simple bankruptcy. If additional issues or objections arise, the waiting period can be even longer. When a tenant files a reorganization plan such as Chapter 11 bankruptcy, and chooses to assume a lease, it can still take months before plan payments begin disbursement and monthly rents begin flowing again.