If you decide to assume the lease, then you will still be responsible for honoring the terms of the lease.
When you reject a lease you are stating that you no longer want to honor the lease terms, and you will have to surrender use of the leased property.
In addition, by rejecting a lease agreement in a bankruptcy, you receive a discharge from any further obligations under the lease agreement.
You can only assume or reject an unexpired lease, and when you assume a lease you are responsible for curing any defaults in your obligations under the lease. This means that any money you owed on the lease will need to be paid.
Remember: A bankruptcy is an opportunity to get a fresh start. You should carefully consider whether to assume a lease where you are behind on your monthly payments.
If you assume the lease and can’t catch up on the monthly payments after your debts are discharged in a bankruptcy, you will once again run the risk of being sued by the lessor to force you to honor the lease.
by Kevin Gipson, New Orleans, Louisiana bankruptcy lawyer.