Chapter 13 and leased vehicle

[COrnguy]

Will the bankrupty determine a new value for my leased vehicle? When I turned in the previous one, they just tacked on the mileage overage of $4500 to the amount financed/leased. Someone told me that often, the true value of the vehicle is often redetermined and a new monthly lease rate can come out of the deal. I have just completed 2 of a 5 year lease. Any way I can turn a vehicle back in? I am current.

Thanks in advance!

[CindyLou]

We need more info. Did you already file BK? When did you lease our vehicle? Sound like you should give it back given the negative equity from the start. Give us more info on your timeline and we can give you a better answer.

[COrnguy]

Might be doing a 13 next week. Am starting year 3 of a 5 year lease.

Thanks in advance.

[lrprn]

Might be doing a 13 next week. Am starting year 3 of a 5 year lease.

Did a search and found this information about Ch 13 and car leases at http://www.totalbankruptcy.com/cars_in_bankruptcy.htm -
"Your car lease cannot be paid through the Chapter 13 Plan you devise with your bankruptcy attorney. You can "assume" the lease and continue making the monthly payments. You can "reject" the lease and return the car to the creditor. The creditor will sell the leased vehicle, apply the sale proceeds to your lease balance and then file a claim in your Chapter 13 bankruptcy case for the lease deficiency. This deficiency is an unsecured, non-priority claim, which means you will likely only pay that creditor pennies on the dollar."

[CindyLou]

Is you credit already in the toilet(like most of us was) or could you go out and purchase a vehicle prior to the BK? If so, that would be a good way to get out from under this WAY upsidedown lease. Any chance you would qualify for a 7? Are you above the median in your state?

[nervousnellie]

Car lease

Our lease was included in our plan and was listed as secured .We turned the car back in on schedule,just as we would have if we had not filed Ch.13.


Filed 11/03/2003
341 12/16/2003
Confirmed 02/09/2004
Discharged 06/22/2007