Leased Vehicle and Finance Used Car

[chelle]

Hello,

My husband and I are about to file Chapter 13. My leased vehicle is up in 6 months. I have been approved to finance a used car at a decent rate w/ low miles. Do you think I would have any problems when I file because of the vehicle purchase? Can I just turn in my lease with the bankruptcy. Located in Florida Middle District.

[NoTomatoCan]

Very popular question (one that most of us have had to think about as we prepare for our CH13). Issue was just discussed earlier this week:

http://www.bkforum.com/showthread.php?t=48702

Most people suggest getting your vehicle situation squared away prior to filing as credit will be hard (if not impossible) to come by after you file and having to petition the court and get trustee approval for a modification would be a pain (if you could even get financing). In general, since you have every intention of paying back this loan, and will continue to make the payments while in your BK, there should be no problems.

As for the lease - typically yes you can turn it in. They are just anohter unsecured creditor.

[debtinohio]

Yes - just refuse the lease as part of your filing.

[chelle]

Bought a new car and I file next Fiday. Yippee!!!

[ArizonaBK13]

Thanks to this post (and other "get your cars figured out before you file" posts) I focused today on getting a new car to replace my currently leased car (whose lease ends 9/2010) and I'm glad I did!

My credit has been declining since I've been missing credit card / heloc payments and I don't know how much longer I would have been able to qualify for a good rate (Got 6.63% for a 60 month) and purchase a new car.

Now the plan going into the BK is to take the two cars we are purchasing (both with fresh 60 month loans) and surrender the leased car. The car I just purchased today's monthly payment is close to the leased car, so that shouldn't raise eyebrows.

Thanks again everyone - I feel so much better now that I have this in line!