Structure Rent Repayment Plans to Take Advantage of New Bankruptcy ‘Preference’ Rules

They say that no good deed goes unpunished. And if you’ve cut tenants a break on their rent during the COVID-19 crisis, you may have learned the truth of this maxim the hard way. This is especially so if the tenant later declared for bankruptcy. Thanks to the so-called rule of preference, you might have had to cough up the deferred rent payments to the tenant’s other creditors.