Does bankruptcy automatically terminate a property management agreement?

When a party involved in a property management agreement declares bankruptcy, it does not automatically terminate the agreement. Instead, the bankruptcy process provides certain protections and allows for the negotiation of contracts, including property management agreements, to continue under specific circumstances.

This means that the property management agreement may still be valid and enforceable, depending on how the bankruptcy court rules. The management company may continue operating and fulfilling its obligations under the contract unless the court decides to reject or modify the agreement as part of the bankruptcy proceedings.

The other options suggest that bankruptcy would universally end property management contracts or apply only under certain conditions, which does not accurately reflect the legal standing regarding bankruptcy and contracts.