Reaffirm the car or not?

[Klesko]

I am still 2 months away from filling but I have been going back and forth on to reaffirm my current auto or not. Me and my wife let our second car get repoed early in the year. So we only have one car now.

My current auto is a lease from Volkswagon credit and I am not late on it now, I was early in the year, it was almost repoed. I will have about 18 months left on the lease from expected filing date. The lease payment isnt horrible $480 but would be nice to get that eliminated. I was thinking about buying the car at the end of the lease but its said to be worth 13k at the end... It was only 20.5k new. Since we went to one auto, I am going to be way over my miles at the end of the lease so I will need to trade it in, or buy it to avoid a huge fee.

Advantages to keeping the car
- Keeps a credit line active on my report making the next auto loan in a few years easier.
- New reliable car
- Allows me to get another lease with VW down the road.

Disadvantages
- No current good standing car loan
- I dont think VW would lease/loan to me again
- Need to come up with cash to buy another car
- Extra 480 a month
- Will be forced to deal with the mileage issue

Just wondering about some of peoples thoughts.

[JRScott]

I'm not sure you'd even have the option to reaffirm a lease.

The code doesn't address that as a lease is not the same as ownership with a lien on it (which is a normal car payment).

[pookieny]

I know someone who filed BK with a lease on a toyota and she got to keep it and even re-leased it for a couple more years.

[justbroke]

Just wondering about some of peoples thoughts.

You cannot reaffirm a lease, but you can "assume" an unexpired lease. You need to do this within 60 days of filing, or the lease is automatically considered "rejected". Assume means to basically reaffirm it, and reject means to basically surrender it. (11 USC 365)

[shabam]

Has anyone assume a lease?

I know I am not comfortable reaffirming a lease.

[justbroke]

Has anyone assume a lease?

I know I am not comfortable reaffirming a lease.

For all purposes of this discussion, assuming a lease is just like reaffirming a loan.

[shabam]

For all purposes of this discussion, assuming is lease is just like reaffirming a loan.

I should have reworded that. Has anyone successfully had a ride-through on a lease? Specifically with Toyota.

[pookieny]

Yes, you can keep a lease going after bankruptcy- I think they call it re-leasing it.

[akim1972]

I did not reaffirm my leased vehicle due to excessive mileage and the damage. I am going to continue to pay my monthly lease payment and surrender it right before my lease term expires. Company will not repossess the vehicle as long as you continue to make the payment on time. My attorney thought that this would be the best option.

[Klesko]

I did not reaffirm my leased vehicle due to excessive mileage and the damage. I am going to continue to pay my monthly lease payment and surrender it right before my lease term expires. Company will not repossess the vehicle as long as you continue to make the payment on time. My attorney thought that this would be the best option.

This works?

So I could not reaffirm it, or whatever its called for a lease, and then say 3-4 months after BK after I have saved enough for a new car just surrender it then? It would be under my BK and not take any new credit hit?

[Tbornetun]

Correct. Cool huh?