Mercedes Lease Question

[brokerealest]

Hi Guys

I have a mercedes that is leased. I need to keep the car (I am a realtor and I use it to drive clients around).

My lawyer told me that in my district the only reaafirms that are approved are if it is medical related. (ie. I need a special van for my handicap child)

I was told that as long as I keep the payments current I should be ok. But then I read on the boards of some car companies taking non-reaffirmed cars back.

Should I worry that the car will be taken back? (the lease is through mercedes directly)

Thank You!!!!!

[justbroke]

When you stay current on payments, but don't reaffirm the lease then it's called a ride-through. By staying current, the lender (lessor) doesn't mind that you are no longer responsible for any debt owed on the lease.

I haven't heard that Mercedes is difficult to work with in these instances. There are some lenders like Ford Motor Credit who are harsh. However, it may be your State's non-bankruptcy laws which protect you from them repossessing the vehicle. In some States, so long as you are current, the lender/lessor is prohibited from taking any action against you. You District must be in such a State.

[brokerealest]

Thank you justbroke-

I tried to google my state and didn't find anything (VA).

I am keeping my fingers crossed on this. I can just imagine a tow truck follow me while I show houses to clients!

[CH33 Paralegal]

If it's a lease, you're just going to assume the lease. There is no "reaffirmation" on a lease.

[brokerealest]

Sooo,

Is there paperwork for that? We only recieved reaffirmation paperwork. Lawyer looked at it and said it didn't apply to us.

Or is assuming the lease the same as doing a ride through.

Sorry, still learning the lingo

[justbroke]

Is there paperwork for that? We only recieved reaffirmation paperwork. Lawyer looked at it and said it didn't apply to us.

Okay, this is where it gets confusing.

Or is assuming the lease the same as doing a ride through.

Assuming a unexpired lease or contract means that the status quo is maintained and the terms and conditions of the original lease/contract are in full force and the debtor is not discharged as to that debt.

The reason why I say it gets confusing, is that you merely need to assume the lease in order to keep that status quo. I "personally" don't understand the reason for a reaffirmation agreement for a lease, but I'm no attorney.

[brokerealest]

Ok, my head is starting to hurt. So assuming the lease is similar to reafirming a car loan.
Since my lawyer said I would need to do a ride through, I am assuming my district won't approve assuming the lease.

So hopefully the repo guys wont show up if I keep making payments. (do the car companies ever tell you they are coming to get the car, or do they just send the goons?)

[CH33 Paralegal]

The car company has the right to take it the minute there is no BK protection.

Have you tried to call the lessor? Inform them of what's going on and let them know you want to keep the lease going. I'm sure they'd rather let you keep the car a little longer instead of putting another used car on the lot, keep accepting payments, and the longer you have it, the closer you get to possibly going over the mileage, which is more money too. I'm sure the way things are right now, the'd rather you keep leasing.

[OhioFiler]

The car company has the right to take it the minute there is no BK protection.

Have you tried to call the lessor? Inform them of what's going on and let them know you want to keep the lease going. I'm sure they'd rather let you keep the car a little longer instead of putting another used car on the lot, keep accepting payments, and the longer you have it, the closer you get to possibly going over the mileage, which is more money too. I'm sure the way things are right now, the'd rather you keep leasing.

I would think a lessor would be more likely to try to recover a leased vehicle than a lender would on a car being sold outright. The lessor knows for certain they wll be getting the vehicle back at some point and the lessee is paying the lease down to a certain residual not to paid in full. No experience with either though.

[Notes4fr]

When I worked for a towing company and we were doing a repo, we were told to go pick it up (from the lendor, I believe... I didn't work there long, so I wasn't involved in that part of it!). There was one repo (someone else did) where we were told that the police were going to be there in case there was an issue, but to just lift the wheels, drive off and put the safety chains on it when we were clear of the scene. It was a bad neighborhood.

I do not think they give a heads up to the "owner" of the vehicle. They don't do that on "Operation Repo" either. People would be "ready" for the repo guy, or possibly start damaging the vehicle to "stick it to the man".

Just for the record, I only did towing for three months. Didn't make enough money at it.
I didn't do a repo myself, so technically.... I'm not a goon!

[brokerealest]

I just called mercedes. When I told them my district wont approve the reaffirmation/assumtion paperwork they sent me she seemed stumpted.

I think I will try back tommorrow and see if I can talk to someone who knows what I am talking about. I am hoping that since noone (so far) has said that their lease was repoed that they will let me do a ride through

Thanks for all the help!!!

[justbroke]

I just called mercedes. When I told them my district wont approve the reaffirmation/assumtion paperwork they sent me she seemed stumpted.

Make sure you speak to the "Bankruptcy Department". There is usually a different department that knows how to deal specifically with bankruptcies. If you were already communicating with that department, then I'm stumped too.