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Old 02-13-2003, 04:29 AM
WackyPacks
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Collection from Company in Chapter 7


What is the name of your state? CA

Landlord leases store space to a fairly large franchise, but they fall behind about $8,000 in rent. Franchise is successfully sued multiple times by former franchisees for "churning". Other legal action against the franchise is imminent, so the franchise files for Chapter 11. During this period, landlord is still receiving monthly rent, although past debt is not being reduced. In June 2002, franchise declares Chapter 7. Rent to landlord ceases. Lease expires in Nov 2002. Franchise refuses to pay past debt, pay current rent, or move. Debt is now over $15,000. A lawyer has been hired, but as you might expect, ethical behavior and attorneys are not necessarily synonymous terms.

Questions:

1. How likely is it to recover the past debt?
2. How can the landlord get the current rent?
3. How can criminals like the franchise owner occupy a store without a current lease? Evicting this company is impossible.
4. Isn't Chapter 7 a fixed time period? Landlord suspects that franchise will stay "forever" since the franchise owner has already demonstrated on multiple occasions his willingness to swindle as many people as possible.
5. Will the landlord's case be helped any if he can demonstrate that some other landlords are being paid rent, but he is not? That is, the franchise is not following terms of bankruptcy?

Thanks
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