In the typical case where the person renting real property (the lessee) can no longer pay the rent and is facing eviction, the filing of a bankruptcy petition will halt any dispossessory action or collection activity.   In the bankruptcy court, however, the renter will have to exercise one of three options regarding the lease:   1)  REJECTION of  the lease ; 2) ASSUMPTION of the lease; or 3) ASSIGNMENT of  the lease. 

If the debtor 1) rejects the lease, the debtor has no further rights or liability pertaining to the lease and must leave the premises.   The Landlord may, however, have a claim against the estate for back rent owed  and  any holdover rent.  If  debtor  2) assumes the lease and remains on premises, the debtor’s estate must make all payments under the lease on time.  If back rent is owing, it can be paid under a Chapter 13 plan, if the debtor qualifies for a Chapter 13 filing.  If the debtor does not qualify to fund a Chapter 13 payment plan, and must consequently file under Chapter 7, the debtor will not be able to remain on the rented premises unless all rent is current.   If the debtor is allowed by Landlord to 3) transfer the lease to another and does so, then Landlord must look to that third person—not the debtor in bankruptcy—for any further collection of rent.