The Vital Role Played by Contracts in Bankruptcy Law

An executory contract allows a debtor to slowly pay off his or her debt obligations through smaller installments that are easier to manage. These contracts most often outline a payment plan for large assets such as land, houses, and cars.

In this video, you will learn how a lender decides to accept the terms of an executory contract. To find out details about the debtor’s financial circumstances, a meeting will take place between both parties. In this meeting, the lender will ask some questions about the debtor’s current assets, income, and debt obligations.