Every bankruptcy case contains a portfolio of documents that provides financial information about the debtor involved in the case. This includes, but is not limited to, details about the debtor’s assets, liabilities income, and expenses. The documentation for this information is primarily broken down into schedules and statements on forms designed by the Department of Justice and United States Bankruptcy Court. Schedule G deals with unexpired leases and executory contracts. Most bankruptcy debtors leave this schedule blank since it is inapplicable.
Schedule G and the remainder of the bankruptcy schedules must be completed and filed by every bankruptcy debtor within 14 (fourteen) days of the date that the bankruptcy petition was filed. These schedules and every other document filed with the U.S. Bankruptcy Court must be completed to their utmost accuracy since debtors are under penalty of perjury.
On Schedule G, debtors must list the following:
- executory contracts
- unexpired leases
An executory contract is a contract where the performance of both parties takes place at some future time. Examples of executory contracts are leases for equipment, motor vehicles, and apartments. Other examples include internet or cable provider agreements, listing agreements with realtors, annual gym memberships, timeshare agreements, and cell phone contracts.
In Chapter 7 cases, an unexpired lease or executory contract may be assumed by the Chapter 7 trustee assigned to the case if it has any value to the bankruptcy estate. Otherwise, debtors may choose to assume and continue a personal property lease or discharge this obligation (stop making lease payments) in the bankruptcy case.
If you have an unexpired lease or executory contract, it’s important to know how it affects a bankruptcy and should be discussed with a seasoned bankruptcy professional. Theron Morrison and his team of attorneys and staff at the Morrison Law Group are experienced in helping debtors gather the information necessary to complete and file all their bankruptcy schedules and statements. Call 801.456.9933 today to schedule a FREE consultation. We are Utah’s only statewide bankruptcy law firm and have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.