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Do I get to keep my Car lease after Ch 7 bk ???

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Do I get to keep my Car lease after Ch 7 bk ???

I filled bk in October 2008, my car lease was included and did not sign any reaffirmation agreement. The bk was discharged in January although I am still waiting on my discharge paperwork. Now I still have the car, I even called the attorney for the lender and they keep saying they will arrange something but they never do. They don’t even return my calls anymore. I figure if they want my car they know where I live, work and have my contact information they will come for it.

 

I was wondering if they don’t come for it do I just keep it until they finally ask for it back? Thanks any advice would really help! I know they can ask for their car back but if they never ask for it does it mean I just keep it?

 

I will be moving out of state so should I just take it with me, I rather have it with me than just leave it there, they won't allow me to even return at dealer.

 

 

Cuteblossom

Message 1 of 8
7 REPLIES 7
Contributor

Re: Do I get to keep my Car lease after Ch 7 bk ???

No, you can't keep it. Who are you leasing from? I'd probably drop it off at the dealer, put the keys in the night drop box, and be on my way. That's probably not the right approach though. Smiley Wink
Message 2 of 8
Valued Member

Re: Do I get to keep my Car lease after Ch 7 bk ???

Blossom, he is right, i talked to a lawyer because i still have this darn mustang, anyways he said I could drive it until they got ready to repo, he also said to drop it off, they dont like it but there is nothing they can do about it. The only other thing he said to do is go thru the court to obtain the title for $1, i dont know if u can do it if u have been discharged, but if not and u like the car u can try. Talk to your attorney.
Message 3 of 8
Senior Contributor

Re: Do I get to keep my Car lease after Ch 7 bk ???

If you did not reaffirm and included it in the BK, then how could you keep it?  That debt has been discharged by the courts, thus the asset goes back.  However, if you sign a new lease, then you can keep it....but you have to get the lender to give you a new lease.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Message 4 of 8
Established Member

Re: Do I get to keep my Car lease after Ch 7 bk ???

Yes I have been discharged, how do I file to get the title.

 

If they want the car they can have it but my lenders attorney told me I cannot drop it off at the dealer since it will get lost in the mix, they don't return my calls anymore.

 

So I hope I can keep it from what I am reading alot of people have it 1-2 years out of discharge but that was for auto loan and this is a lease.

 

Thanks for any help!

 

Cuteblossom 

Message 5 of 8
Senior Contributor

Re: Do I get to keep my Car lease after Ch 7 bk ???

If you included in BK and did not pay or are not going to pay off, then you can't get the title.  You need to wait till they repo.  However, you are responsible for damage, theft or loss to the vehicle even if you are no longer responsible for the original loan.

 

If you don't want the car, you need to make arrangements to get it back to the finance company sooner than later.  Driving it does carry liability....be sure to keep the insurance in force till it is picked up.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Message 6 of 8
Established Member

Re: Do I get to keep my Car lease after Ch 7 bk ???

Of course I still have it insured but its not my fault if they do not want to pick it up what could I do? Like my lawyer said we cannot force for them to pick it up. I don't understand why I would be liable to any loss or damage of the car it hasbeen discharged therefore they cannot come after me. Just like one would not beresponsible for damages to a home that has been included in bankruptcy or foreclosed upon. Could you please provide some legal support to this txJohn??  I am started to get freaked out now, I am not the first on this forum to go through this, there are many people on here who's car has not gotten repossessed even without payments and having included it in bankruptcy

 

thanks! 

Message 7 of 8
Senior Contributor

Re: Do I get to keep my Car lease after Ch 7 bk ???

The courts do not see it that way.  They rule on "reasonable precaution" and "reasonable care" for the property in your care until it can be returned.

 

The lender did not dump the car on you.  The fact that you have discharged the loan does not discharge liability for damage in your care.  They could sue you for damages or loss if they can prove you did not use "reasonable measures" that would be expected.

 

I'm not attempting to argue, just to FYI so that you don't have any issues later on.  I would advise calling/writing the lender and putting them on notice that the vehicle is locted at <LOCATION> and needs to be picked up by <REASONABLE TIME>

 

Just because you have discharged debt does not mean you shouldn't at least provide some common courtesy to the lender.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Message 8 of 8
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