Legal Question in Bankruptcy in Indiana

executory contracts and non expired leases.

I filled chapter 7 in July of 2002.Listed in the brankruptcy was real property that I was selling on contract.The person buying this property on contract was listed under the Sec. E of the chapter 7 in Executory contracts and unexpired leases.The trustee did not asume this contract.The chapter 7 has been discharged.I did not reafirm my mortgage.The person listed did not aquire a mortgage for the property after I had urged her to,do to

credit problems unknown to me.This person remains in the realestate to this day and has not payed rent to anyone for seven months.After the discharge my mortgage company called me and asked if I would like to work something out in terms of A new mortgage.Thus letting me keep the property.If I understand correctly Sec.365 of the bankruptcy code subsection(D)paragraph(2).states any executory contract not assumed or rejected by the trustee shall be deemed rejected 60 days after the order for relief has been filed.There for the contract has been rejected.I have filled an eviction notice which is set for hearing on Jan 31 2003.This person listed under Sec.(e)of the chapter 7 was also listed as A non-secure creditor.Does this all sound corect?


Asked on 1/11/03, 11:53 am

1 Answer from Attorneys
John Bator Bator Redman & Shive

Re: executory contracts and non expired leases.

Yes and no. Remenber that you own the property still. The buyer did not assume the contract nor otherwise enter into an agreement to reaffirm therefore the debt owed to you under the contract has been discharged.

As to your mortgage, you need to make peace with your lender to prevent a foreclosure. Also, the law generally requires the contract seller to foreclose as opposed to an eviction, but if you can get it done, good luck

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Answered on 1/14/03, 2:25 pm


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