My attorney filed chapter 7 for me yesterday - woohoo! However when I returned my leased car today the dealership made me sign an odometer statement with a balance due to mileage due to Toyota. They would not accept the car otherwise. Am I going to be able to discharge this? Worried
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In a word, the answer is "Yes". You will not be responsible for any such "overage" charges. As an additional comment, I would love to represent you if the lender tries to assert you have any further liability under the "rejected" and subsequently discharged lease.
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Thank you! So because the lease was already in place it is dischargeable?Comment
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Put differently, the debt accrued at the time when the vehicle was driven more than the allotted number of miles. The debt did not accrue as a result of signing the paperwork to return the car. Therefore, since the excess miles were clearly not driven in the less-than-24-hour period after your petition was filed, the debt is a pre-petition debt and subject to discharge. Don't worry about this.Comment
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Actually, the obligation (i.e. debt) accrued on the date the lease was signed even though the amount of the obligation was unknown. Even if the car was driven for months after BK was filed, poorinny's obligation to pay for those miles would have been discharged along with all obligations under the lease.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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