Cite as: Keith M. Lundin, Lundin On Chapter 13, § 36.14, at ¶ ____, LundinOnChapter13.com (last visited __________).
Schedule G to Official Bankruptcy Form 6 is a list of executory contracts and unexpired leases. The instructions indicate that the debtor is to list all unexpired leases of real or personal property, including any time-share interests. The names and complete mailing addresses, including zip codes, of all other parties to each lease or contract must be listed. The debtor must describe any contract or lease and explain the nature of the debtor’s interest. In Chapter 13 cases, the most common executory contracts or leases are for an apartment or home, car leases and rental agreements for personal property such as TVs, stereos or washing machines. Each such lease or contract must be listed and fully described.
A party listed on Schedule G will not necessarily receive notice of the filing of the case unless the party is also listed as a creditor in one of the other schedules. Without regard to whether the debtor owes an arrearage, the other party to every lease or contract should be listed elsewhere in the schedules. Neglecting this second listing may leave the other party to the lease or contract without notice of the filing. This can be a big problem for the debtor, for example, if a landlord or car lessor is in the middle of an eviction or repossession. After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA),1 landlords and lessors have many new rights in Chapter 13 cases.2 Providing immediate, accurate notice to landlords and lessors has become more important and Schedule G is not sufficient for this task.
Where and how to list the other party to a lease or executory contract is not altogether clear. The instructions to Schedule A (real property) and Schedule B (personal property) state not to list interests in executory contracts or unexpired leases. The contract itself may or may not create a security interest for purposes of listing in Schedule D. If listed as an unsecured claim in Schedule F, is the “amount of claim” the sum of all payments under the contract, or just the amount of any default or arrearage? The answer could make a difference if the debtor is pushed up against the debt limits for eligibility.3 Maybe a safe approach is to list the other party in Schedule F as an unsecured nonpriority claim holder and show the amount of claim as “notice only.”
1 Pub. L. No. 109-8, 119 Stat. 23 (2005).
2 See, e.g., 11 U.S.C. § 362(b)(22), (b)(23), (h), (l) and (m), discussed in §§ 431.1 [ Real Estate, Landlord and In Rem Exceptions ] § 58.9 Real Estate, Landlord and In Rem Exceptions after BAPCPA, 431.3 [ Miscellaneous New Stays and Exceptions ] § 58.11 Miscellaneous New Stays and Exceptions after BAPCPA and 495.1 [ Leases and Executory Contracts after BAPCPA ] § 102.3 Leases and Executory Contracts after BAPCPA.
3 See § 11.1 [ Dollar Amounts ] § 14.1 Dollar Amounts.