Executory Contract Questions
What is an Executory Contract?An executory contract is an agreement, which has not yet been completely carried out or completely executed. In another words, it is an agreement in which each parties still have significant obligations to satisfy. On the other hand, an obligation to compensate cash, even though such responsibility is material, does not typically create a contract executor. If a contract has been fully performed by one of the parties but not the other it is not an executory contract. When dealing with bankruptcy law, a trustee may assume or reject any executory contract subject to court approval.
Is an Exclusive Distributorship Agreement an Executory Contract that must be listed in bankruptcy?If the contract is presently in force then yes this would be, and is required to be listed on agenda G (Executory Contracts).
If someone currently has an apartment, rental agreement in which they are current on rent and plan on continuing the agreement after bankruptcy. When the party adds this agreement to the Individual Debtor's Statement of Intention, do they need to check "Yes" for "lease will be assumed pursuant to 11 U.S.C. 365(p)(2)?"The lease for the individual’s apartment building will not go on the Statement of Intention. Section two of the Statement of Intention is for rent for private possessions (for example cars) simply not for real property (such as apartments). The individual’s housing lease will go on Schedule G ("Executory Contracts and Unexpired Leases").
Is there a case law regarding a bankruptcy trustees’ right to the turnover of the available unused portion of a line of credit in a reverse mortgage?There is nothing regarding a reverse mortgage and the trustee's right to have the debtor turnover the available unused portion of the mortgage. On the other hand, a reverse mortgage is an "executory contract," an agreement that is not completely carried out. In entrenched main beliefs of bankruptcy bylaws, the trustee is required to assume an executor contract within 60 days of the date of filing of the Chapter 7 bankruptcy petition. Alternatively, in a Chapter 13, at some time prior to verification of the arrangement or else, the agreement is considered discarded, and reverts to the debtor.
Can bankruptcy take property after the person dies?Every executory contract is required to be confirmed, or discarded in 90 days of filing the bankruptcy petition. As long as the individual survived the 90 days of filing, the contract cannot be canceled.
If someone filed chapter 11, what relief is available as for as rent they can no longer afford?A chapter 11 bankruptcy will provide someone the opportunity to agree to or terminate any executory contracts, such as a rental agreement.
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