Car Lease

[MattG]

new jersey - i leased a car 2 weeks before bkrpty was discharged. it was not on the petition. the leasor would not send me statements, etc. as to acct. bal and payments. i have been making the monthly payments. the lease is up in two months. can i just turn the car in and not have to pay for milage over and other possible charges since lease was prior to discharge of debts?

 

[bigun]

If you didn't list it on the petion, you are in some trouble. By law, you have to list all creditors prior to being discharged. Were I you, I'd pay the damages and not make waves. You do not want the creditor telling the bk court about your fraudulent filing and giving one creditor preference over others.

 

[modernist]

Hmmm, why would this be listed as a debtor? I only ask as it was a new contract taken out AFTER the filing/institution/establishment of payment plan/schedule of the bankruptcy...and considering that it was 2 months before the BK discharge, the lender obciously knew this debtor had a BK and proceeded to write the loan anyway...?

I guess he could have reopened the case and added in this debtor if wanting to walk away from his obligations (what is the point when weighing in the fact that this was a secured debt, thus the car would have reverted back to the lender, or he would have had the option to continue on his lease uneffected by the BK anyway.)

Either way, he is still liable for mileage overages as set forth in his lease...that is, unless he files again.

 

[HomeGuru]

Hmmm, why would this be listed as a debtor? I only ask as it was a new contract taken out AFTER the filing/institution/establishment of payment plan/schedule of the bankruptcy...and considering that it was 2 months before the BK discharge, the lender obciously knew this debtor had a BK and proceeded to write the loan anyway...?

I guess he could have reopened the case and added in this debtor if wanting to walk away from his obligations (what is the point when weighing in the fact that this was a secured debt, thus the car would have reverted back to the lender, or he would have had the option to continue on his lease uneffected by the BK anyway.)

Either way, he is still liable for mileage overages as set forth in his lease...that is, unless he files again.

My response: you must understand that the BK Law reads that any change in the Petitioner's financial situation must be reported to the BK Trustee. Plainly, if there were any changes in assets and liabilities, the BK Court must have a record of this. So in this case, the fact that the lease was signed after the BK was filed and before discharge has no bearing. In addition, the fact that the vehicle was leased (and therefore not really an asset) has no bearing. Therefore, the auto lease should have been reported. Since it was not, the writer is under no BK protection and the lessor is entitled to seek damages and remedies in accordance with the terms and conditions of lease contract.
The bottomline is that the writer is not protected and will be treated as any customer without BK protection.