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Landlord’s Rights: Enforcement Options in Insolvency

When dealing with a debtor or a tenant that has fallen behind with its payment obligations, one of the most cost effective ways of a creditor/landlord reducing its exposure against that entity will be to take advantage of a “self-help” remedy, such as taking possession of the entity’s assets and selling them in repayment of the sums owed.

However, when the entity is the subject of insolvency proceedings, the availability of the various self-help remedies varies depending on:

  1. Which enforcement method the creditor intends to take;
  2. Which specific insolvency procedure the debtor is in; and
  3. At what point during that insolvency process the creditor seeks to take that step.

We have prepared a table summarising each of the variables identified above, which can be accessed here.

Depending on the type of “self help” remedy exercised and when it is exercised will determine whether the landlord can retain the benefit of it.  For example, monies received following the sale of goods may have to be paid over to the insolvent estate for the benefit or all creditors if the sale occurs post insolvency.

In most cases, the earlier the decision to take advantage of and exercise the “self help” remedy the better the outcome for the landlord.

© Copyright 2020 Squire Patton Boggs (US) LLPNational Law Review, Volume IX, Number 66

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About this Author

Jon Chesman, Squire Patton Boggs, Restructuring Lawyer, UK,
Associate

Jon Chesman is an associate in the Restructuring & Insolvency Practice Group based in our Leeds office. He provides contentious and non-contentious insolvency advice to insolvency practitioners, banks, companies and creditors. 

In particular, Jon has gained extensive contentious insolvency experience including the pursuit of Insolvency Act claims, misfeasance and asset tracing.

Jon is involved with a number of educational programs in Leeds, including mentoring A-level and undergraduate students as well as running employability workshops as part of the...

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