Disclaimer of leases-bankruptcy and liquidation, Financial Accounting

Disclaimer of leases

In principle where the bankrupt is a lessee the lease cannot be disclaimed without leave of the court; but such leave is not required in the following cases.

1. If the property is not sublet or mortgaged and

  • Its real value is less that Shs 400 p.a.; or
  • The estate is being administered summarily, or
  • The trustee serves notice of his intention to disclaim on the lessor and the lessor does not within seven days require the matter to be brought to court;

 

2. If the property is sublet or mortgaged and the trustee serves all parties with notice of his intent to disclaim and no party within 14 days requires the matter to be brought to court.

Posted Date: 12/13/2012 12:55:52 AM | Location : United States







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