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Question - Defaulting on Car Lease

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    Question - Defaulting on Car Lease

    I need to file BK due to credit card debt from divorce. My ex filed and passed on a ton of joint debt to me. I can't make these payments and have stopped making all pymts as of June 2009.

    Here's my situation. Please let me know if this all sounds good and if it should work, or if I'm mistaken.

    - I have a car lease. I still have 7 months left on it, I am over mileage and will owe at least $2,000 when I turn it in next May 2010.
    - I plan to file bankruptcy in Jan/Feb 2010
    - I had planned to keep the lease but now I plan to get a replacement vehicle in October 2009 with a co-signer and keep this new car loan instead of the car lease.
    - I then plan to stop making payments on the car lease without turning it in this October, and just wait for them to repo. I'm worried that turning it immediately might make the process of them coming after me faster before I file in Jan/Feb 2010.

    Questions:

    - How does all the above sound? Am I on the right track? Correct with my thinking?
    - How long can I go before it is repossessed?
    - Will they sue me or try to garnish wages before I file for BK in Jan/Feb 2010?
    - With a co-signer with great credit, I will be OK in getting a car loan, right? I have very poor credit at this point? (My thought is that holding and paying this loan through BK and after BK it will help build good credit after BK and I can avoid the $2,000 or so I will pay from turning the lease in)
    - Is defaulting on a lease and filing BK any worse than keeping lease current and filing BK? In other words, am I already credit-screwed by BK so defaulting on the lease too isn't really going to matter.

    #2
    Help

    Can someone, anybody help me...really struggling with this. Thanks in advance.

    Comment


      #3
      Once you get a replacement car, I see no reason to continue to keep the lease any longer. It would be best to discuss this with a attorney prior to doing anything. They would have a idea of what chapter you will end up filing, and they can give their expert opinion on your plan.

      Best of luck to you.
      8-07-09-filed Chapter 7
      11-18-09-DISCHARGED!!

      Life is not what challenges you face, but how you face those challenges.

      Comment


        #4
        cubswin , did you see an attorney yet? I hope so, it is good to have one so you can file within the timeframe that you wish to. With my car lease I owed on it too but because of the BK, I had BK protection and then they never sent me a final bill when I turned in the car.
        Much thanks for all the support and information I receive on this forum.
        Chapter 7 filed 11/21/2008
        341 Meeting 01/05/2009
        Discharged 03/06/2009

        Comment

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