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Assigned Rents During Bankruptcy: Lessons From NJ Case

Law360, New York ( March 3, 2014, 2:25 PM EST) -- On Feb. 4, 2014, the United States Bankruptcy Court for the District of New Jersey in In re Surma, (Bankr. D.N.J. Feb. 4, 2014), held that rents were not property of the debtor's bankruptcy estate because they were subject to an absolute and unconditional assignment of rents in favor of the secured lender. As a result, the court concluded that the debtor may not, through his Chapter 11 plan of reorganization, use or allocate rents....

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