If you’ve ever been involved in a contract and are unable to perform, you may be wondering whether or not you can still discharge your obligations in bankruptcy. Thankfully, there are several options for you, including bankruptcy. Here’s what you need to know about executory contracts. Here’s a brief rundown of the most common options available. You’ll be glad you read this!
First, you can assign your executory contract to someone else. This is a great option for many people. While you’ll need to fulfill your obligations under the contract, you may be able to assign it to someone else if you have the financial ability to do so. Regardless of which option you choose, make sure you’re sure to hire a bankruptcy attorney. If you’re unsure of whether you can transfer your contract, make sure you consult with a bankruptcy attorney for advice.
Chapter 7 bankruptcy is one of the best options for handling both executory contract obligations and overall financial issues. Bankruptcy allows you to be freed from the balance of your executory contract obligations and the landlord will release your personal guarantee without consequence. However, bankruptcy does not grant you the right to keep an asset. Hence, bankruptcy is the best option to consider if you’re facing a similar situation.
In most cases, you can continue to make payments despite your bankruptcy. Bankruptcy allows you to use the car without having to pay for it. However, you should keep in mind that you may need relief from the automatic stay in order to cancel a contract. If you’ve purchased tangible property or a licensed agreement, there are some options for you. You should know that certain contract clauses will be ineffective in bankruptcy, such as non-assignment clauses.