Professor: What to List on Bankruptcy Schedule G.

Understanding Bankruptcy Form Schedule G: Executory Contracts

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Welcome to my continuing series on navigating the U.S. bankruptcy petition forms. Today, we’re tackling Schedule G: Executory Contracts and Unexpired Leases.

Don’t let the term “executory contracts” intimidate you; it’s just legalese. For most consumer filers, you can simplify it down to one key concept: leases.

This section requires you to list all contracts where both sides still have unfulfilled obligations. In plain English, this primarily means unexpired leases on vehicles, apartments, equipment, or other goods.

Why “Know Your District” is Critical

When completing the Schedule G form, there is one piece of advice that is paramount, and one I’ve argued from day one in my professional practice: Know Your District.

Missing Creditors in Bankruptcy? Here’s What You Can Do

How the bankruptcy forms are interpreted and enforced can vary dramatically based on the specific judicial district you file in. Practices in the Southern District of Florida (Miami) are different from those in the Middle District of Florida, and certainly different from courts in other states.

The Cell Phone Trap

A perfect example of this district-specific variance is cell phone contracts.

• My past experience in Miami was that trustees generally did not care if a debtor failed to list a cell phone lease, even for expensive cell phones.
• However, traveling just one county north (still within the Southern District), I found trustees asking about cell phone leases.

What You Need to Know: If you are filing pro se (on your own) or just want to be safe, you should always list it. Listing an item on Schedule G, even if a local trustee historically ignores it, is better than having to amend your petition later, which costs time and money.

Clarifying Leases vs. Assets: What Not to List

The biggest issue I see when reviewing petitions is the confusion between a lease and an asset.

The Lease is Not an Asset

The fundamental rule to remember is: A lease is not ownership. You are merely renting the item for a defined period. This distinction is crucial, especially regarding:

1. Apartments/Condos: Clients use the word “condo” interchangeably with “apartment,” but an apartment is not an asset to be listed on other schedules (like Schedule A/B). You are simply renting.
2. Leased Vehicles: If you are leasing a car, you are renting the vehicle. You are not the owner.
   • Yes, most auto leases include an option to buy at the end of the term. But it is just that—an option, not an obligation, and that option is not till the end of the lease.
   • Do not list a leased vehicle as an asset. Listing it incorrectly creates confusion for the Trustee and will force you to file an amendment.

What to List on Schedule G

Schedule G is straightforward: you are only listing the existence of the lease. For each unexpired lease or executory contract, you must list:

• The name and address of the creditor/lessor (e.g., your landlord or the leasing company).
• A brief description of the contract (e.g., Apartment Lease at 123 Main St. / Chevrolet Traverse Auto Lease).

The Essential Connection to Expenses

While you do not list a lease as an asset, the monthly payment is a critical expense in your bankruptcy calculation.

• When you complete Schedule J (Your Expenses), make sure to deduct that car lease payment, apartment rent, etc.
• This is essential because the Trustee will compare your income (Schedule I) to your expenses (Schedule J) to determine your disposable income. The higher your legitimate expenses, the lower your disposable income, which can be critical for eligibility and payment calculations.

The decision of whether you intend to keep the lease (assume the contract) or reject the lease (terminate the contract and surrender the item) will be addressed on a separate form. For the purposes of Schedule G, you are simply listing the current, unexpired agreements.

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