Several mechanisms of enforcement are in place to allow commercial landlords to recover rent arrears from a commercial tenant. Often these are based in the contract and governed by the terms of the specific lease (forfeiture or damages for breach of contract). Some are found in statute such as the Commercial Rent Arrears Recovery (CRAR) procedure for the rent against certain goods of the tenant at the premises.
However, if a tenant fails to pay the rent because it is (or may shortly become) insolvent, the landlords ability to exercise CRAR, sue the tenant or forfeit the lease may be restricted. The landlords recovery rights will vary depending on the process of insolvency that the tenant has initiated.
This article will focus on landlord…
Read the full article at: https://www.ibblaw.co.uk/insights/claiming-against-insolvent-tenant