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When either a landlord or tenant files for bankruptcy, there are two things that can happen to the lease. The landlord or tenant (actually, the trustee) can either: assume the lease, that is, allow the lease to continue in effect, or. reject the lease, which essentially terminates or cancels the lease.
As most know, if a tenant does not pay rent, then the landlord can seek an order from the Landlord and Tenant Board (LTB) terminating the tenantâs tenancy and permitting the landlord to evict the tenant. If the LTB makes an eviction order, the eviction can then be carried out by the Court Enforcement Office (Sheriff).