It is common for landlords to contend with tenants filing for bankruptcy. From restaurants falling out of fashion to a startup failing to find its footing, if you own properties long enough, you will see it all. The legal road map to navigating those situations, however, can be easier to follow than in the opposite scenario—what happens when the landlord files for bankruptcy?

A U.S. Court of Appeals for the Third Circuit decision concerning a tenant in a struggling Atlantic City, New Jersey, casino provides more guidance on this issue and serves as a reminder of the considerations a buyer must make when purchasing a commercial property through bankruptcy, as well as the protections a tenant must secure before it signs a lease.

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