Chapter 11: Personal Property Leases

Web posted and Copyright © 1/12/98, American Bankruptcy Institute.

The following abstract summarizes the text of submissions made to the National Bankruptcy Review Commission. The abstract is organized by NBRC working group and topic.

The Final Report of the NBRC can be viewed on-line. To obtain a copy of any document shown below, contact the Center for Legislative Archives, Room 205, National Archives Building, Washington, D.C. 20408. The telephone number is 202/501-5350. Mr. R. Michael McReynolds, Deputy Director, will be able to assist with specific inquiries. (The NBRC documents will be housed at this location until June, 1999. Thereafter, the records will be transferred to the Center's archives in College Park, MD.)

ID Name Group Other Code
Problem Referenced Proposed Solutions
NBRC-0318 Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum President-National Association of Credit Management ("NACM"), Chair-NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively Personal Property Leases 365
NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below. NACM's Government Affairs Committee concludes that § 365 should be amended to provide that: if a trustee assumes a lease for real or personal property in which the debtor is the lessee, at the time of assumption all post-petition lease payments must be paid. The curing of pre-petition defaults will not be required, and any such claims shall be treated as allowable unsecured claims without priority.