Using Chapter 7 to Keep Your Leased Vehicle.
But if you’ve leased your vehicle instead of buying it on credit, then that “reaffirmation” option doesn’t apply to you.
But if you do want and need to keep your leased vehicle, you will likely be able to do so under either the Chapter 7 or Chapter 13 procedures.
Can I lease a car after Chapter 7?
Before you apply for a car lease, you’ll need to make sure your bankruptcy has been discharged. A Chapter 7 bankruptcy usually only lasts three to five months, and the only way you’ll typically be able to lease another vehicle is if you reaffirmed your current loan or lease during the bankruptcy.
What happens to a car lease in a Chapter 7?
When you file for bankruptcy, the automatic stay stops all collection actions, including efforts by a car lessor to repossess a leased car. However, if you are behind on your car lease payments when you file for Chapter 7 bankruptcy, your car lessor will likely ask the court to lift (end) the automatic stay.
Can I keep my leased car in Chapter 13?
Continuing With the Car Lease in Chapter 13. You can also choose to keep the car lease and with it the lease payments and the vehicle. The Chapter 13 trustee will pay the creditor through your Chapter 13 plan. Disadvantages.
Is a leased vehicle considered personal property?
Who Pays the Personal Property Tax on a Leased Car? In states that levy a personal property tax, you may be paying a percentage of your car’s market value to the public treasury. If you’re leasing, however, you’re not the legal owner and may not be liable. It all depends on the lease agreement that the dealer offers.
Photo in the article by “Naval History and Heritage Command – Navy.mil”