When you file for bankruptcy, if you have an interest in an executory contract or unexpired lease—such as a car lease, rental agreement, or timeshare contract—you must list it on a form called Schedule G: Executory Contracts and Unexpired Leases. Read on to learn more about how to fill out Schedule G.
For more information about the forms you must complete in bankruptcy, see our topic area on Completing the Bankruptcy Forms.
An executory contract is a contract where both parties still have certain obligations to perform. Similarly, a lease is unexpired if the lease period and terms are still in effect. The following are some of the most common executory contracts and leases you might need to disclose on Schedule G:
Not only does Schedule G tell the court about your executory contracts and unexpired leases, it allows the bankruptcy trustee to determine whether they can benefit your bankruptcy estate. Like other assets, your interest in a contract or lease is considered property, and, if it can be sold for a profit, the trustee will assume (take over) it.
While contracts and leases rarely provide money to the bankruptcy estate, they sometimes do. For example, say Jane has an agreement to lease commercial office space for 30 years at $1,000 per month. Shortly after Jane entered into the lease, the area around the office building experienced significant growth. As a result, the market rent for a similar office space in the building is now approximately $5,000 per month. Because the market value of the lease is significantly more than what Jane is paying, the trustee may be able to assign or otherwise use her lease to generate a significant amount of proceeds for the bankruptcy estate.
Schedule G is a simple form with detailed instructions about the information you must provide. If you don’t have any executory contracts or unexpired leases, simply check the “No” box indicating that you have no such interests. But if you do, you must list:
If you’re filing a Chapter 7 bankruptcy, you’ll tell the court—and the other involved parties—whether you want to keep or let go of your unexpired lease on another form, the Statement of Intention for Individuals Filing Under Chapter 7.
This article provides general information only. There are many legal issues involved and important decisions to be made when filing for bankruptcy. You must understand the entire bankruptcy process, learn about the applicable federal and state laws, and determine how those laws will affect your particular situation before you complete the bankruptcy forms. In many cases, it's best to consult with an experienced bankruptcy attorney. If you want to file bankruptcy without a lawyer, use a good do-it-yourself book like Nolo's How to File for Chapter 7 Bankruptcy to ensure you make well-informed decisions about your bankruptcy case.