Executory Contracts in Chapter 7 and 11 Bankruptcies
Originally published: January 2014
Disclaimer: This article is a brief overview of executory contracts in Chapter 7 and 11 bankruptcies. The information is not, nor is it intended to be legal advice. It is imperative that any action you take be done on the advice of competent legal counsel, and not based solely upon this article.
In most business bankruptcies there are secured and unsecured creditors, with specific rules applying to each category. However, there is another, third category of creditors, which are usually unsecured, but must be listed separately in Schedule G. This third category is made up of executory contracts and unexpired leases -- the rules for which are found in 11 U.S. Code § 365 – Executory Contracts and Unexpired Leases.