Skip to main content

Posts

Showing posts from November, 2025

How a Chapter 13 Discharge Affects Your Lease in Pennsylvania?

Bankruptcy affects lease agreements. In Pennsylvania, how a lease is handled depends on the chapter filed, your contract status, and the court’s treatment of the lease. Under Chapter 13, you may keep the lease and continue payments. You may also reject it, but that comes with conditions. A Chapter 13 discharge can eliminate unpaid lease debt, but only if the lease was rejected or not reaffirmed. Several factors influence the result: The type of lease involved Whether the lease was current or in default Whether your case is dismissed, converted, or comp During life under Chapter 13 , lease terms continue unless the court or trustee intervenes. Some filers run into problems after paying off Chapter 13 after 36 months , especially if the plan ends early or if a voluntary dismissal of Chapter 13 takes place. The legal outcome is rarely automatic. Lease obligations continue unless the court says otherwise. Can Bankruptcy Cancel a Lease Agreement in Pennsylvania? Bankruptcy does not cancel...