From the Editor – Leases

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By The Honorable William Houston Brown (Retired)

Nonresidential lease deemed rejected when not timely assumed by trustee. Finding that § 365(d)(4)(A) applies in Chapter 13 cases, an unexpired nonresidential lease on which the debtor is lessee must be timely assumed, and the lease was automatically rejected if the trustee does not assume it within 120 days of the petition filing. The plain language of that section does not permit a debtor to assume such a lease. The court discussed two reported cases supporting the debtors’ position that they could assume, but disagreed with them . . .

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