Amy West

Under Section 365(d)(5), lease obligations arise when payments become due, requiring debtors to comply with all lease obligations post-petition unless and until the lease is rejected within the statutory grace period.

In a recent pair of decisions, the Ninth Circuit Bankruptcy Appellate Panel held that even fully secured creditors with nonrecourse claims and unsecured creditors who are paid off after the involuntary petition may qualify as petitioning creditors.