North Carolina Senator Thom Tillis Introduces A Bankruptcy Relief Bill For Landlords And Tenants

CHARLOTTE, N.C. — Republican Senator Thom Tillis introduced a bill that would change bankruptcy law to become more flexible to provide relief to landlords and tenants amidst the pandemic, according to a news release.

“With many companies, small businesses, and landlords facing significant uncertainty, we must do everything we can to support their continued survival,” said Senator Tillis. “The pandemic has made it difficult for businesses to meet their necessary obligations, including paying rent on time, which in turn creates difficult financial scenarios for both tenants and landlords. Under the existing law, both landlords and tenants have little flexibility when addressing any sort of relief. My legislation will make necessary changes to the old law, allowing more time, flexibility, and compromise for landlords and tenants.”

The bill would give small businesses more time to pay their rent, give all businesses more time to decide what to do with their leases, and motivate landlords and vendors to make payment terms more flexible, according to a news release.

Government officials say the current bankruptcy law gives companies a 60-day delay to pay rent, and Tillis’ bill would double that time period to 120-day delay.

Tillis’ bill would also allow companies up to 300 days to decide to keep, or get rid of certain leases instead of 210 days, according to a news release.

Tillis says his bill would protect future payments to landlord and vendors from any fees, penalties, or interest if businesses did not enter into flexible payment terms.

“ICSC commends Sen. Tillis in offering balanced and timely legislation in light of the COVID-19 impact on both commercial landlords and tenants. The legislation will help businesses struggling with bankruptcy to weather the storm,” ICSC President and CEO, Tom McGee said. “The bill provides significant relief to small business debtors and landlords; reinforces what many landlords have done since spring; and encourages deferred deals going forward.”