Leased vehicle in Bankruptcy

I am not sure, swoody. Are you talking about including the lease payments on the vehicle in Chapter 13 and keeping the car, or ending the lease early, returning the car and paying the penalty on the early lease termination through Chapter 13?

I know that you can reaffirm your vehicle loan and pay it through a Chapter 13 plan, or you can continue to pay it outside the plan, without losing the car. However, I'm not sure about a leased vehicle. I'm sure someone else here more familiar with that type of situation will comment. I'd also recommend asking a bankruptcy attorney to be sure, so you know what you're dealing with before you go into it.

Haqve you spoken with a lawyer concerning your question? I believe that leased vehicle can be included because it is a debt however a lawyer's advice is strongly urged when dealing with what debts you can put on a chapter 13.

May I ask how much debt have you incurred and why are choosing to file a chapter 13 instead of a Chapter 7? I am also asking why are you considering bankruptcy period. Have you exhausted all of your options in terms of debt consolidation or working out a payment plan with your creditors?

As a person who filed a few years ago, I wished I had had another alternative instead of filing. I just don't want to see others get into the same boat I am in.

We are looking into it, because we got a Trustee Notic of Sale on our house. We don't want to lose our home. Our mortgage company is working on a payment plan, but it would make our payment double what it usually is. I am just not sure we can handle that.

You can sever the lease contract in a Chapter 13 filing, and the contract would be treated as an unsecured debt. You can also choose to re-affirm the lease; it is your choice.

What exactly doe re-affirm mean?

Reaffirm is when you sign a contract stating that you are going to keep the vehicle. I believe it is a contract between you and the finance company.

You may be able to renegotiate the lease contract with the automobile dealership. This could work to your benefit, as the dealer doesn't usually want the car back, they'd rather still make some money off of you.

Can I include my leased vehicle on a chapter seven case?