First of all, I want to be sure I understand what you are asking:
Are you asking: (1) Is a payment which has not yet came due at the time the bankruptcy is filed an asset of the bankruptcy estate?
Or: (2) Assuming that payments that have not yet came due are part of the bankruptcy estate, can the Trustee demand acceleration or must the Trustee accept the payments as they come due?
I will apologize in advance because I know this is not the type of detail you are looking for, but I will tell you my understanding of the concept and practice, even if I cannot find a specific holding verifying my understanding.
If you are asking (1)
above, then my understanding is that if a debt is owed when the bankruptcy is filed, even payments that have not yet came due are still part of the bankruptcy estate and may be taken by the Trustee. So, if the debtor has the right to receive payments through 2014 at the time a bankruptcy is filed, all future payments become part of the bankruptcy estate and can be administered by the Trustee.
11 U.S.C. 541(a)(1) says that the bankruptcy estate includes "all legal or equitable interests of the debtor in property as of the commencement of the case."
And, I believe the right to receive a payment in the future counts as an equitable interest in that payment today.
If you are asking (2)
above, I am not aware of any authority the Trustee has to accelerate the debt and require the payor to pay it all at once. 11 U.S.C. 542(b) says an entity that owes a debt to the bankruptcy estate that is "matured, payable on demand, or payable on order," shall pay the Trustee, but it does not say that an un
matured loan has to be paid all at once. The legislature's silence in giving Trustees acceleration powers in this section implies that Trustees have no such power.
But, I have not seen too many Trustees willing to sit and wait several years to be paid (though they can). Generally, I have seen Trustees settle these types of debts with the payor by negotiating a lump-sum one-time settlement payment so the Trustee can pay the creditors, close the case, and move on.LEGAL NOTICE: I am only licensed to practice law in certain state(s) and I cannot give legal advice to someone who does not reside in a state in which I am licensed, nor shall anything I say in the above answer or elsewhere on this site be deemed legal advice, even to someone who resides in a state in which I am licensed. Fees I receive for answering questions are paid for information, not for legal advice. This forum is designed to provide general information only, and information herein is not warranted to be correct or applicable in any way since laws may have been misinterpreted herein, since laws change from time to time, and since the impact of those laws on any particular situation varies. The information presented in this site shall not be construed to be formal legal advice nor the formation of an attorney-client relationship. Persons accessing this response are encouraged to seek independent legal counsel in their jurisdiction for guidance regarding their individual circumstances. Do not take any action or inaction based on information presented herein since it is informational and may not be accurate or applicable to you; it merely attempts to give you a basis of knowledge to help you formulate questions to ask a legal or other professional in a face-to-face meeting in your jurisdiction. JoeLawyer is an attorney but does not hold himself out to be a specialist or expert in any area, regardless of assertions made by any third party, and any implication of being an expert or specialist herein is made in error. I hope the information presented above is useful to you. Answer above is (c) JoeLawyer. All rights reserved.