Court Approval

[Dj1995]

[I]Debtor is required to obtain court approval prior to exercising any purchase option upon which an executory contract is proposed to be assumed by the debtor.[I]

During the course of our Chapter 13, our cell phone plan expired, which means we are only running month to month. It was my plan to just keep it this way, and if a phone died, just use an old phone. Well, 2 of our phones have died, and the old phones are no longer "workable" with the service - In order to get a "free" phone, we would have to re-sign a 2-year contract. I hope this doesn't sound dumb, but, is a cell phone contract an executory contract, and would we need court approval to upgrade the phones - the amount charged for the service would not change.

[justbroke]

The cellphone contract is an executory contract, but I have never read where a court or Trustee wanted you to ask permission to get a new cellular phone. Actually, it's more like a utility service and that is a necessary debt to have. Trustees and the Court are no in the business of approval these types of contracts, including those for, say, an apartment lease.

What you posted is from 11 USC 365 and it is really about an executory contract that existed at the time that you filed. If you start a new two-year term with the cellular company, that's a new and distinct contract.

[LadyInTheRed]

The quoted languge prohibits the exercise of a purchase option without court approval. You are not exercising any option by entering into a new cell phone contract.