surrendering a leased car mid way?

[itlm062]

has anyone surrender a leased car mid way thru their chapter 13? (do not think the lease was ever "confirmed" and is currently paid outside of the plan)

i am worried that the trustee would raise the payment amount, but our atty said it shouldn't go up.

just wondering if anyone has done anything similar and what were the results?

thanks!

[kornellred]

Are you actually allowed to surrender a leased vehicle before the lease term is finished? That would be kind of like stopping payments on a financed vehicle which is being paid outside the Chapter 13 and letting the creditor repossess the vehicle. Keeping current with payments on secured loans paid outside the Chapter 13 payment plan is required, or else you are in default and your case would be dismissed. Check with your attorney - you cannot make decisions like that on your own.

[AngelinaCat]

I am thinking along the lines of kornellred. I know that you cannot incur new debt in a CH13 without the trustee's permission. I do not know about surrendering a vehicle in a CH13, whether leased or not. You need to check with your attorney.

[catleg]

I think people tend to over analyze this issue.
You can jump through all kinds of hoops, modify your plan, get approval from your attorney, trustee, etc.
That is the hard way.
Realistically the trustee just wants you to complete your plan payments with as little hassle as possible.
The car lessor wants you to make your payments and maintain insurance on the car.
So you could skip a payment, the lessor is going to send your lawyer a "heads up" letter that something is wrong, then you call the lessor before they go through with the relief-from-stay and repo process, and offer to voluntarily surrender the car. They'll be happy just to get the collateral back. Probably nothing at all appears on the records of the bankruptcy case, the car just disappears. Worst case the lessor files an amended claim representing an unsecured loss from the early return of the car (damage, excess mileage, legal fees, etc). Chances are they probably won't even bother since the return to them is going to be minimal.
This is the kind of thing where you rely on your attorney's experinece in dealing with the trustee's office in deciding how to proceed.