Debtor’s Furniture Rental Agreement Is Lease to Assume or Reject

Furniture acquired under a rental-purchase agreement is a lease under Florida law that a couple must assume or reject in bankruptcy, the U.S. Bankruptcy Court for the Middle District of Florida held (In re Jack, 2017 BL 265228, Bankr. M.D. Fla., Case No. 9:16-bk-08007-FMD Chapter 13, 7/31/17).

Bankruptcy courts typically determine whether a lease agreement is a security agreement or a true lease by considering factors such as whether title to the property is transferred at the end of the lease term for a nominal value, Judge Caryl E. Delano wrote July 31.

Property rights in bankruptcy are ...