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Who turned in a "leased" car post-bankruptcy - would you trust it wont destroy your credit ?

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Who turned in a "leased" car post-bankruptcy - would you trust it wont destroy your credit ?

I completed CH-7 BK a little over a year ago (discharged in Jun of 2016).  I have a lease that was included in the bankruptsy but not reaffirmed. I continued to pay the lease amount and retained the vehicle.  I am comming to the end of what would have been the lease and starting to think about what my next steps are. 

 

That said, If I rent or lease I have to decide what to do with the car I have. I called Chase Auto and spoke with the bankruptsy dept. It looks like I have a ouple of options in that area.

 

  1. Run to the end of what would have been the lease and turn it in. No further action required, No deficiencies for wear or mileage can be charged.
  2. Trade in (car dealer payoff buyout amount),  wrap in any shortage or equity into new lease or loan.  (no penalty’s or deficiencies). Requires appraisal KBB says it is worth $17,817 - $19475  so likely a shortage since the buyout is $20,105

Here is the third option with the BK dept at chase that I am not sure if I can trust will go exactly as discussed.

 

3.   Call Chase finance tell them I do not want the car anymore. They will pick it up (voluntary repossession). No further action required. They can’t charge deficiencies since it was included in BK . Credit remains annotated as included in bankruptcy,  (Not as repossessed). 

 

I am not sure if I can trust that.  Anyone have a lease in their BK that surrendered the car post BK.  how did it get annotated in your credit report ?

would you trust option 3 ?

 

I am also trying to decide If I should buy a low cost car first, until my scores return to normal levels. then get the car I want.

 

 

 

 

My current scores are not ideal but I have a 648, 658 FICO 8 scores for Equifax and Experian.  I have been employed at the same location for 12 years and make a very good income. Potencialy I can get an auto Lease or loan. Perhaps no the best rate but possibly. I have two 7 year old credit lines that did not close when I declaired bankruptsy (since I had no balance) and a credit One card that I opend about 5 months ago. (my reports are currenly correct).  

 

Thanks for the help

8 REPLIES 8
Moderator Emerita

Re: would you trust it.

Leases are handled differently in a Bk.

 

How was you lease listed in the Bk petition?  You may have inadvertantly reaffirmed your lease.  The best person to speak to is your bk attorney. 

 

Read this link in NOLO about vehicle leases and bankruptcy: http://www.nolo.com/legal-encyclopedia/what-happens-car-lease-bankruptcy.html

Message 2 of 9
New Member

Re: would you trust it.

Thank you

It was listed as retain and pay in the statment of intent per my lawer. 

It is marked at balance 0 and Included in BK on my report.  Chase stated it was not reaffirmed today when discussing it with him.

Message 3 of 9
New Member

Re: would you trust it.

Checked with my Lawer and she said "yes you can decide to give it back and they cannot come after you for a deficiency."  She also said they likely will not report to the credit agencies.   Sooo do I just dump it if it is under water is the question.  Do I trust that I won't have to mess around with my report afterwards.  I would love it if someone who turned in a car post-bankruptcy (retain and pay) could chime in. 

 



 

Message 4 of 9
Established Contributor

Re: would you trust it.

I just recently did it I had a car with Hyundai before bk I also acquired another during bk process which sense I got it before filing was also included. Decided after filing I wanted neither car. Called finance companies said come get ur stuff done and done no penalty
CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX -- Discharged (5/31/17) - 538 EQ 501 TU 559 EX
PenFed CLOC $500 - NFCU nRewards $2k - Merrick $800 - CreditOne $700 - VS $250 - Overstock $250 - KingSize $250 - Macys $5.8K (AU) - AmEx $1k (AU)
Message 5 of 9
Established Contributor

Re: would you trust it.

Although I did say in my bk forms was going to reaffirm. Long as u don't sign the reaffirmation agreement ur fine.
CH7 Filed (3/29/17) - 516 EQ, 517 TU, 483 EX -- Discharged (5/31/17) - 538 EQ 501 TU 559 EX
PenFed CLOC $500 - NFCU nRewards $2k - Merrick $800 - CreditOne $700 - VS $250 - Overstock $250 - KingSize $250 - Macys $5.8K (AU) - AmEx $1k (AU)
Message 6 of 9
Established Contributor

who turned in a "leased" car post-bankruptcy (retain & pay) ? ? ?

 

 

Consider doing an "edit" on the Thread's Title, and you might get more specific responses.

 

I "only" clicked on it because it was very vague and click-bait-esque.

 

I had absolutely NO idea as to the specific topic of the thread.

 

If you can't change it, ask a Moderator for assistance.

 

Best Wishes

 

 


Taxus wrote:

Checked with my Lawer and she said "yes you can decide to give it back and they cannot come after you for a deficiency."  She also said they likely will not report to the credit agencies.   Sooo do I just dump it if it is under water is the question.  Do I trust that I won't have to mess around with my report afterwards.  I would love it if someone who turned in a car post-bankruptcy (retain and pay) could chime in. 

 



 


 

 

who turned in a "leased"  car post-bankruptcy (retain and pay) ? ? ?

 

.

05/03/16 Fico 8 Scores: EQ 546, TU 501, EX 548
09/01/16 Fico 8 Scores: EQ 662, TU 628, EX 657
10/04/16 Fico 8 Scores: EQ 692, TU 665, EX 686
01/15/17 Fico 8 Scores: EQ 706, TU 670, EX 687 * all Yellow / Good
Message 7 of 9
New Member

Re: who turned in a "leased" car post-bankruptcy (retain & pay) ? ? ?

Good point thanks for the tip - I adjusted the title.

Message 8 of 9
Valued Contributor

Re: Who turned in a "leased" car post-bankruptcy - would you trust it wont destroy your c


@Taxus wrote:

I completed CH-7 BK a little over a year ago (discharged in Jun of 2016).  I have a lease that was included in the bankruptsy but not reaffirmed. I continued to pay the lease amount and retained the vehicle.  I am comming to the end of what would have been the lease and starting to think about what my next steps are. 

 

That said, If I rent or lease I have to decide what to do with the car I have. I called Chase Auto and spoke with the bankruptsy dept. It looks like I have a ouple of options in that area.

 

  1. Run to the end of what would have been the lease and turn it in. No further action required, No deficiencies for wear or mileage can be charged.
  2. Trade in (car dealer payoff buyout amount),  wrap in any shortage or equity into new lease or loan.  (no penalty’s or deficiencies). Requires appraisal KBB says it is worth $17,817 - $19475  so likely a shortage since the buyout is $20,105

Here is the third option with the BK dept at chase that I am not sure if I can trust will go exactly as discussed.

 

3.   Call Chase finance tell them I do not want the car anymore. They will pick it up (voluntary repossession). No further action required. They can’t charge deficiencies since it was included in BK . Credit remains annotated as included in bankruptcy,  (Not as repossessed). 

 

I am not sure if I can trust that.  Anyone have a lease in their BK that surrendered the car post BK.  how did it get annotated in your credit report ?

would you trust option 3 ?

 

I am also trying to decide If I should buy a low cost car first, until my scores return to normal levels. then get the car I want.

 

 

 

 

My current scores are not ideal but I have a 648, 658 FICO 8 scores for Equifax and Experian.  I have been employed at the same location for 12 years and make a very good income. Potencialy I can get an auto Lease or loan. Perhaps no the best rate but possibly. I have two 7 year old credit lines that did not close when I declaired bankruptsy (since I had no balance) and a credit One card that I opend about 5 months ago. (my reports are currenly correct).  

 

Thanks for the help


I'd trust my lawyer on this and I certainly wouldn't pay any under water amounts. 

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU Cash Rewards/NFCU Platinum/PenFed Power Cash Rewards/PenFed Pathfinder AMEX/Citi Costco Visa - $96k total revolving
EQ/EX/TU: FICO 8's November 2019: 696/679/668, 14% utilization, AZE2 (w/ those 2 cards reporting 30% util), INQ's: 4/2/1
Message 9 of 9
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