What Happens to Executory Contracts?
There are two basic options in connection with executory contracts. You may accept the contract, meaning that you either retain the property (or continue receiving the service) and continue to make each of the regular payments as they come due. Alternately you may reject the executory contract which means you cancel the service and return the property if any. Executory contracts are automatically rejected if they are not accepted within 60 days of bankruptcy filing and the stay is lifted as to the property involved. Under former law you could not force acceptance of an executory contract unless the account was current. The new law also adds confusion to executory contracts. Section 362(h) states that if the contract is not assumed within 30 days after the first meeting of creditors the stay is lifted. This can be more than 60 days after filing as required by 365(d) and (p)(1). Further 365(p)(2) seems to give the creditor the right to reject an executory contract even if you are current
