Legal Question in Bankruptcy in California

Car lease and bankruptcy

I declared bankruptcy approx. 2 yrs ago. I did not claim the car I am leasing on the bankruptcy and I am continuing to pay on it. In fact, I have been sending in the monthly fee plus additional funds to try to pay off the lease early. The problem is, the leasing company will not send me statements reflecting the balance remaining and my payment being credited to my account. They say it is illegal to send me any statements due to the bankruptcy. My one credit card that I didn't include in the bakruptcy still sends me statements, why can't they? Is there anything I can do? I just want to make sure my account is being credited correctly. Thank you.


Asked on 10/30/02, 3:57 pm

3 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Car lease and bankruptcy

They can't send them because they would be violating the automatic stay provisions of 11 USC 362 by doing so. You have a bigger problem if you didn't list these creditors in your bankruptcy case. I'm not sure what you mean by "include". If you are concerned about your payments being received, just give them a call to check each month.

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Answered on 10/30/02, 4:09 pm
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Car lease and bankruptcy

Thank you for your posting. The automatic stay of bankruptcy prevents any creditor from "taking any action to collect on a debt", including sending letters, statements, etc., asking for payment.

As a result, many creditors mark the account with a "statement hold" so that they don't violate the federal law that sets up the automatic stay.

You may need to send a copy of your discharge papers showing that your case is closed, or speak to a supervisor to lift this hold. Many larger creditors let you check applied payments via a telephonic system or through the internet, but not getting statements is a pain -- just realize that initially this was done for your own good.

Best of luck, and please email or call if you have any questions.

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Answered on 10/30/02, 4:30 pm
Alvin Tenner Law Office of Alvin G. Tenner

Re: Car lease and bankruptcy

The leasing company has learned about the BK and you should amend yours to show this. You are really reafirming the debt. the credit card compnay has not learned about this and they should be included in any amendement.

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Answered on 11/01/02, 2:14 pm


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