Debtor is tenant
The land is third-party property, but the contract right may have value.
Debtor is landlord
Land may be sold subject to the effective lease.
Transfer is conditional
Consent, notice and statutory restrictions depend on the land and contract.
Arrears split by date
Pre-petition and current rent may receive different treatment.
Identify the debtor’s role first
| Scenario | Legal focus | Key record |
|---|---|---|
| Debtor leases private land | Tenant rights and duties, transfer, term and value | Lease and land-register entry |
| Debtor leases public land | Land Code Article 22, term, allocation route and restrictions | Lease, authority decision and auction or no-auction basis |
| Debtor owns and lets land | Land, lease encumbrance and landlord succession | Register, lease and payment record |
| Building stands on land | Connection between land and building rights | Register extracts for both assets |
| Rent is overdue | Periods before and after petition acceptance | Monthly reconciliation and court date |
Where the debtor is tenant
The plot remains the lessor’s property and does not enter the debtor’s estate. The debtor’s contractual property rights may enter the estate under Article 213.25 where transferable and valuable. After bankruptcy recognition, estate rights are exercised through the statutory process rather than personally by the debtor.
Land Code Article 22(5) often permits transfer within the remaining term after notice to the landlord unless the contract provides otherwise, but the article contains material exceptions for particular public-land programmes and tenants. Public land leased for more than five years has the specific Article 22(9) rule. A free assignment should therefore never be promised before reviewing the contract and land basis.
Where the debtor is landlord
If the plot enters the estate, an effective lease is accounted for as an encumbrance. Civil Code Article 617 provides that transfer of ownership does not by itself amend or terminate the lease: the buyer succeeds as landlord. Registration and actual enforceability matter for long-term arrangements.
Rent receivable by the debtor is also an estate asset. During asset realisation, third-party performance to the debtor follows Article 213.25.
Is the lease ready for legal assessment?
Check the records already reviewed. Nothing is transmitted.
Rent debt and termination
Rent for periods before petition acceptance is generally a registered claim, while later accruals may be current under Article 5. Bankruptcy alone does not terminate the lease. The landlord must rely on contractual and statutory grounds, including material breach and arrears, and follow the applicable procedure.
Build the timeline
Lease, registration, petition acceptance, rent periods, notices and breaches.
Map the parties
Owner, tenant, subtenant and building-right holders.
Test transferability
Notice or consent, public restrictions and remaining term.
Value the economics
Rent, arrears, development duties, costs and market value.
Reconcile buildings
Building rights may constrain separate transfer of land or lease.
Choose the route
Continuation, arrears settlement, transfer or termination requires the correct process.
Frequently asked questions
Will leased land be sold for the tenant’s debts?
No. The land belongs to the lessor. The debtor’s lease right may be assessed and, where transferable, sold.
Does bankruptcy automatically end the lease?
No. A statutory or contractual termination ground and the proper process are required.
Is landlord consent required to sell the lease right?
It depends on the land, landlord, term and contract. Article 22 often uses notice but contains exceptions.
What happens to a tenant if the debtor’s land is sold?
The buyer generally succeeds as landlord under Civil Code Article 617, subject to lease validity and registration.
How are rent arrears ranked?
Periods before and after petition acceptance are separated and may form registered and current components.
Primary legal sources
- Land Code Article 22
- Civil Code Article 617
- Civil Code Article 619
- Insolvency Law Article 213.25
- Article 213.26: realisation of assets and rights
Related guides
Owned land · Residential tenancy · Current claims
Need to review a land lease?
We can examine land status, transfer restrictions, arrears, buildings and the value of the lease right.
INITIAL CONSULTATIONGeneral information as at 30 August 2026. Treatment depends on land ownership, term, registration, allocation route and the specific lease.
A Leasehold May Have Value but Is Not Automatically Saleable
Quick check
Describe the leasehold, not the land
The debtor usually owns a contractual right rather than the plot.
Model the economics
Rent, remaining term, restrictions and buildings determine value.
Check public ownership rules
State or municipal land may follow special procedures.
An Auction Does Not Cure a Defective Underlying Right
Before marketing a leasehold, verify that it can be assigned, the agreement remains effective and registration rules were met. A bidder needs the remaining term, arrears, permitted use and re-registration conditions, not only the lot price. Obligations arising after acceptance of the petition may be current claims under Article 5 of Federal Law No. 127-FZ.