Would the liability of a co-tenant survive bankruptcy?
Let’s say we have a contaminated property owned by A and B as co-tenants.
There is a contamination spill and A and B as owners are liable.
A goes bankrupt.
B as a co-tenant is still responsible for 100% of the loss.
If C guaranteed A’s obligations, then C is off the hook due to A’s bankruptcy.
If C agreed to indemnify, then this is a greater obligation and A’s bankruptcy wouldn’t matter. C would still be responsible for 100% of the loss.
Brian Madigan LL.B., Broker