Must Executory Contracts and Leases Be Reported in Bankruptcy?

Whether owned or owed, the contractual obligations contained within uncompleted contracts must be reported to the court. The terms of a contract may be either an asset or a liability, and in either case must be listed with a bankruptcy debtor's schedules. Similarly, a lease of real or personal property may represent an obligation for payment or entitlement to receipts. Even though contractual rights may be disputed, and future performance doubtful, the potential for affecting net worth of a debtor requires disclosure. And of course, contractual liability, even remote, is subject to discharge.