You are considering filing a bankruptcy and
you’ve heard the term executory contract. What is an executory contract? My name is
Andy Forman and I’m a Business and Consumer Bankruptcy Lawyer here in Tampa, Florida and
I routinely deal with issues involving executory contracts. An executory contract is a contract
between the debtor, the person or entity that filed bankruptcy and the third party where
some performance is still outstanding, due or owing, a lease on equipment where there
are future payments, a lease to provide services either to the debtor or by the debtor, are
considered executory in nature. Various sections of the bankruptcy code provide for what is
called rejection of the executory contract by the debtor and what that means is the debtor
can decide that they don’t want to use the ABC Company to do a certain service for them
any more and they can reject in bankruptcy that executory contract and that means be
relieved of future performance. If a third party or the debtor breeches that executory
contract there is a section of the code that deals with executory contracts and the claims
that come from them. You will need to seek competent legal counsel to get more information
on this complicated topic. My name is Andy Forman. Good luck with your bankruptcy.