---
title: "Padder Lease Protection: Bankruptcy or insolvency"
description: Your commercial tenant filed for bankruptcy or a proposal? Tell Padder right away, file a proof of claim, and wait for written next steps.
---

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October 2, 2026

# Padder Lease Protection: Bankruptcy or insolvency

## What to do when your tenant files for bankruptcy, makes a proposal or becomes insolvent.

**Tell us right away.** Email [underwriting@padder.com](mailto:underwriting@padder.com) with your warranty number as soon as you receive notice.

#### **What to know**

A bankruptcy or proposal usually brings a stay of proceedings. That generally stops you from enforcing the lease, including terminating it, without the trustee's or the court's permission. Don't serve a Notice of Termination or start distraint until you know what the stay allows.

#### **Steps**

1. **Email us** with the notice you received.
2. **File a proof of claim** with the trustee for the unpaid rent.
3. **Send us** the notice of stay of proceedings, your proof of claim and an up-to-date statement of arrears.
4. **We'll confirm your next steps in writing.** What happens next depends on whether the lease is disclaimed, assigned to someone else or continued.

Questions? Email [underwriting@padder.com](mailto:underwriting@padder.com) with your warranty number.

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Padder Underwriting Inc. is a licensed insurance broker headquartered in Toronto, Ontario. It arranges coverage for tenants and landlords in provinces where it is licensed to offer insurance products. Padder partners with licensed Canadian insurers to provide your coverage. Padder Lease Protection is a warranty, not an insurance policy.

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