Ride-through lease millage charges??

[NoMoreCards]

I have a lease vehicle with Honda, and am 15 months into a 36 month lease. I filed CH. 7, and intend to reaffirm the car. The payments are current.

They have not sent reaffirmation paperwork yet. If they do not, and I keep the payments up...my lawyer says I shouldn't have a problem with a ride-through. My question is...

1.) Assume I turn in this car at the end of the lease, and I am way over miles. If this loan is never officially "reaffirmed", am I still liable for the additional millage charges?

My Attorney says that he believes I will be liable for the millage charges, as they were incurred after the BK. Whereas I question, if the lease was legally written off in BK, and I am only doing a ride through, how can they charge millage after that fact?

I thought this was a interesting idea that we could toss around here a bit and see what y'all thought.

[ska]

I asked my attorney the same question last week. The leasing company did send reaffirmation papers, but we hadn't signed them. My attorney stated that the leasing company may force us to pay the over mileage and the courts may agree simply because my Statement of Intentions stated that I would assume the lease, even if I didn't sign the reaffirmation paperwork. So, on the last day possible, we changed our Statement of Intentions to state that I wouldn't assume the lease.

The only reason I had intended to assume the lease was because the lease was up in September (now) and I was hoping the leasing company would consider refinancing me the car. But no can do! Geesh, why did I stress over staying current! So, I changed my intentions and plan to give the car back this week.

[Calthius]

I don't know if this is right or not but I am going to throw in my two cents.

I am not sure if mileage charges would be taken care of in a ride through. All debt incurred at the time of the filing is subject to discharge. How ever if you ride through on a lease and go over mileage. The mileage charges would be incurred after the discharge and therefore not subject to to it.

[NoMoreCards]

I don't know if this is right or not but I am going to throw in my two cents.

I am not sure if mileage charges would be taken care of in a ride through. All debt incurred at the time of the filing is subject to discharge. How ever if you ride through on a lease and go over mileage. The mileage charges would be incurred after the discharge and therefore not subject to to it.

I agree with what you are saying, however if doing a ride-through and at some point you decide you no longer want the car and stop paying on it. Lets say the car is repo-ed, since it was written off in BK, are you still liable for outstanding money due?

[mom2three09]

I agree with what you are saying, however if doing a ride-through and at some point you decide you no longer want the car and stop paying on it. Lets say the car is repo-ed, since it was written off in BK, are you still liable for outstanding money due?

I would most definitely think that the leasing company could NOT collect on it once it's been included in your BK (and discharged).

We surrendered our Chrysler lease before filing. They sent us a letter telling us how much we owed and ofcourse we included it in our BK.

[SleepWellNow]

We have a leased car which we are keeping (15 more months to lease end). We had to sign an "Assumption Aggrement". It is my understanding reaffirmations are for car loans, not leases. I don't know yet if we will have to attend a hearing on the assumption or not.

Regarding a ride-thru, I came across this article on the internet. It looks like there has been a recent change in the 9th District of California. I haven't seen anyone mention this on the forum. If someone is in that district and is thinking of a ride-thru, you may want to ask your attorney about this and how it may affect you.

http://www.************************/...tes-ride-thru/

[NoMoreCards]

I just got a call from my attorney. The re-affirmation papers are in. I will be signing them in the morning.

But this is a interesting "what if..."

[UpsideDown99]

I just got a call from my attorney. The re-affirmation papers are in. I will be signing them in the morning.

But this is a interesting "what if..."

Does that mean you will be responsible for the over-miles?

[StartingOver08]

If the reaffirmation agreement affirms what the actual lease was - then yes, he will have to pay for the overage on miles. If the OP wants to make a change, this is the time to do it - negotiate your changes directly with the OC. I did that, but frankly it was a car loan not a lease and I changed the terms with the CU and the reaffirmation agreement specified all the NEW terms and was signed by all the parties and filed with the court. Whatever is signed in the reaffirmation is what the terms are going to be going forward.

[NoMoreCards]

Does that mean you will be responsible for the over-miles?

If I purchase the car at the end of the lease (12K buy out price), I will not be liable for millage charges, as I will own the car outright.

If I wanted to turn in the lease car at the end of the lease, I would be charged .25 per mile, over my allowed 36K miles. (I already have close to 50K miles on it).

So given the options, I will have no choice but to buyout the car at the end of the lease.

[UpsideDown99]

If I purchase the car at the end of the lease (12K buy out price), I will not be liable for millage charges, as I will own the car outright.

If I wanted to turn in the lease car at the end of the lease, I would be charged .25 per mile, over my allowed 36K miles. (I already have close to 50K miles on it).

So given the options, I will have no choice but to buyout the car at the end of the lease.

I thought so...
thats horrible.

[liz417]

We have a leased car which we are keeping (15 more months to lease end). We had to sign an "Assumption Aggrement". It is my understanding reaffirmations are for car loans, not leases. I don't know yet if we will have to attend a hearing on the assumption or not.

Regarding a ride-thru, I came across this article on the internet. It looks like there has been a recent change in the 9th District of California. I haven't seen anyone mention this on the forum. If someone is in that district and is thinking of a ride-thru, you may want to ask your attorney about this and how it may affect you.

http://www.************************/...tes-ride-thru/

Thanks for the info My attorney mentioned that Ford and Chrysler tend to be VERY agrressive when it comes to car loans, they DO NOT allow "ride-thrus" and will reposses vehicles that are current if not reaffirmed. It was no suprise to read this petition and to find out it was FORD... I wonder if the other big lenders will follow suit and NOT allow ride-thrus? How does play out for those that are already discharged and didn't sign a reaffirmation agreement?

[shabam]

I did not believe you are required to sign reaffirmation papers for a lease. As long as you state in your petition that you assume the lease, it should continue as usual.

A lease is a completely different process to a loan. I recently read up that once you state and sign that your are assuming your lease, you do not eve have the luxury of rescinding it like a reaff.

[SleepWellNow]

Ford (through their leasing company) sent a "Assumption of Lease Agreement" to my attorney based on stating in our filing we wanted to keep the car. It is not a reaffirmation agreement but it does state we accept all the previous terms of the lease including the end charges (extra mileage, wear & tear, etc). The agreement states if we do not sign the agreement they may repossess the car even if we are current in the payments (which we are).

After much consideration, we decided to sign the assumption. I didn't want to take the chance we would come out one day and find our car gone. We need the car for our business. Also, with the assumption signed, they will report the payments to the credit agencies and this should help to build our scores again. Although we NEVER will rely on credit cards again, it will be a personal satisfaction for me to know my scores have gone up once again. Once the lease is paid off, I am hoping the 3 year record of on-time lease payments to them plus and additional 6 years history of payments towards 2 vehicles paid off (prior to the lease) will benefit us in obtaining a new car loan at the end of our lease.

House and car...that's the only credit I'll allow myself to have again!

[NoMoreCards]

I am debating on if I should reaffirm this lease. Granted they will take the car back, but I could probably go buy a truck right away and therefore have it for the winter and not get stuck into buying a car for 12K with 120K miles on it at the end of the lease period.

The paperwork I was sent does say "reaffirmation of lease" on it.

Being as I am still in the 60 day period waiting for discharge, I am kinda stuck not knowing if I would qualify for a decent truck to purchase. I don't think I can apply during this period. So it is a catch-22 situation. I paid 1300 last winter to plow my driveway, but with a truck I could do it myself and not pay that extra money.

I hate not knowing the right thing to do.