Filing Bankruptcy on a Leased Car
What happens when filing bankruptcy on a leased car? This is one instance where a few different circumstances might change the outcome of your filing.
If you live in the country where a car is an absolute necessity, you will probably be able to keep your car if you file for bankruptcy. If you live in the city, your car will not be seen as a necessity, since you can easily take public transportation. Those that own their cars will be able to keep them, but what about filing bankruptcy on a leased car? If you are able to keep paying for the car, you probably won’t lose it. Then again, it all depends upon your history with your current car lender.
Experts Your Questions Now.
When you first leased that car did you read the fine print? If not, you might have missed the insolvency clause. This clause generally states that in case of bankruptcy the lender has the right to seize the car. However, this doesn’t necessarily mean that they will seize it. You see, most lenders don’t want the car back…they would rather see you continue to make payments on it. Still, if you have a history of missed payments the lender might decide to take the car back and lease it to someone else. Of course, you also have to take into consideration the type of car and the year. If you have just begun a lease on a 2009 Maserati, the lender might take it back and lease it to someone with a better lease history.
Also, it is important to consider whether or not you can actually afford to keep up with that lease. Chances are if you are going bankrupt it means that you have too many things that you cannot actually afford to pay each month. Think about what giving up that lease might mean to your wallet…and to getting your life back on track. Can you take public transport or buy a cheaper car? Sometimes, filing bankruptcy on a leased car in order to keep it just doesn’t make sense. In the end, the best course of action is to speak with a bankruptcy lawyer.
From A Bankruptcy Lawyer Now.
A good lawyer will help you to make sense of all your options. Searching for articles containing helpful information (such as this one) is a great start, but it is not to be taken as legal advice. Hiring a lawyer is the best thing that you can do when it comes to filing for bankruptcy.
As you can see, filing bankruptcy on a leased car depends upon your individual circumstances. Sometimes a lease makes sense and sometimes it is nothing more than another payment that you just don’t need.