Need Help on Executory Contracts

[danaf]

Do cell phone contracts go here?
What about apartment/house leases?

What about a cell phone contract you want discharged?

[danaf]

can anyone offer some insight? I've seen some attorneys put current cell phone contracts and others not so it's confusing.

Just like I've seen one attorney put tax returns in the 'other income earned' area of the Sofa and others not.

[HHM]

Cell phones, no.

Home rentals, yes.

[danaf]

thanks for responding HHM.

So how is a cell phone contract not yet expired not an executory contract, and yet an apartment/house lease is? Both are still in play. Both parties still have obligations to each other (ie, one to provide, one to pay). Just curious.

thanks

[HHM]

Keep in mind, when it comes to cell phone contracts, you can only discharge past due amounts, you cannot discharge the entire contract.

Cell phone contracts are more a-kin to utilities than to true executory leases. A distinction is made between paying for a service, and leasing property. Leases, you pay "in advance", e.g. when you pay your rent on the first of June, you are paying for the month of June. Cell phones & utilities, you pay for usage after the fact, when you pay your cell phone bill on June 10th, you are paying for the month of May.

[CindyLou]

If you want to discharge a cell phone contract you MUST call and cancel and incur the cancellation fees BEFORE you file.

As long as you cancel and get the fees charged to your acct prior to filing, it will get discharged. You just need to list them as a creditor becasue you will have already cancelled the contract. You are not BKing the contract, just the cancellation fees.

If you do not cancel before you file you will be liable for the cancellation fees because they would have been applied to your acct post-BK.

As far as a current cell phone or one you intend to keep, DO NOT list them as a creditor. They will most likely zero out the charges on your acct and demand a large deposit to keep the phone activated.