Does the ch 13 exemption apply to leasing a car?

[contemplate]

Okay, still haven't decided if we are filing but...our lawyer pointed out an exemption for a car payment. Would that also apply to leasing a car or would it only apply if we were paying finance payments on the purchase of a car? Could we still keep the leasing agreement during a 13, if we made the deal before filing? Haven't purchased or leased anything yet, btw.
TIA

[dyrstr8s]

I believe a car lease payment is an allowable expense as long as it doesn't exceed the irs allowance. I have a car loan payment and car lease payment in my plan, paid outside the plan.
The lease expires in a year and I'm not sure what we will do. We will still have 3 more years of bk plan left, so it will be a real hassle to borrow for a replacement.
For that reason, I would not get into a lease that will expire during your plan, as most will. Purchasing a vehicle before you file would be better.

[contemplate]

Ok. Thanks. The deals for leasing are just soo much better in my area. Hhhmm. I would not want to lose the car in the middle of the plan though. Don't they ever do 5 or 6 year leasing? I didn't check. I think the term they were trying to push was 48 months...

[NoTomatoCan]

Just understand that if you are in a 5 year plan and the lease is up in 4 years then you will have to find a way to obtain transportation in that final year.

Leasing another vehicle while in BK will not be easy. Nor will purchasing one (although that will probably be more possible than leasing).

Every one of the lawyers I spoke with and nearly everyone on this board has given the same advice: Make sure you have reliable transportation for the duration of your plan.

Plus, to a certain extent, the payment amount doesn't matter. It just lowers your DMI and means your unsecured creditors get less (assuming you are not in a 100% plan). Not saying to go overboard, but I would make sure you have a reliable vehicle for the length of your plan.

Just something to consider.