Car Lease

[KAM465]

I filed Chapter 7 and I have a car lease that is up in December I've continued to pay the payments in fact I paid the last November 11th no payment is due in December that is when I'm suppose to turn the car in and pay the amount due for excessive mileage.. My 341 meeting was scheduled for 11-18 but it has been postponed until Dec 11.. Do anyone know if they will come and get the car or will I have to turn it in before my bankruptcy discharged ? I don't anyone who filed and had a lease that was up before discharge.

If you did not reaffirm your lease, you my not be responsible for the mileage overages, I read an article when I first filed that discussed this topic. You should discuss with your attorney before paying anything for mileage overages. Although if not a big amount, you may want to pay so you can remain in favorable terms with the finance company should you ever want to use them for financing or leas in the future.

[walkers4]

Thanks KAM465... I'm not reaffirming and the lease will be up before my case is discharged... Do anyone know if they will come and take the car or does the automatic stay apply..

[KAM465]

Thanks KAM465... I'm not reaffirming and the lease will be up before my case is discharged... Do anyone know if they will come and take the car or does the automatic stay apply..

As far as I know you will be protected from the automatic stay and they can not come get it until the discharge. Sounds like you are covered until then.

[bcohen]

If you did not reaffirm your lease, you my not be responsible for the mileage overages, I read an article when I first filed that discussed this topic. You should discuss with your attorney before paying anything for mileage overages. Although if not a big amount, you may want to pay so you can remain in favorable terms with the finance company should you ever want to use them for financing or leas in the future.

Actually, by retaining and paying, you DID NOT ASSUME THE LEASE, and thus DO NOT OWE THE EXCESS MILEAGE CHARGES which are provided for therein. A lease is rejected by default, unless you took the affirmative step of assuming the lease in your Statement of Intentions. Simply give back the car, inform the dealer that the lease was rejected in bankruptcy, and thus the charges are invalid, and refuse to pay them. The finance company cannot legally dun you for those charges!

See the following thread for more info:

http://www.bkforum.com/showthread.php?72220-Never-reaffirmed-vehicle-lease-continued-payments-lease-is-up-Now-what