Legal Question in Bankruptcy in California

Renew or Not Renew Lease?

My car company has a forgive your lease special. My lease normally would not be up for 6 months. I explained I was in the process of filing bankruptcy. They suggest I take advantage and get a new lease before I file as it will cost me alot of interest later on with the bankruptcy on my record. I plan to keep the payments and insurance up on my current lease as I need transportation for my business. Would getting a new lease cause me difficulty in filing? Is it legal to do such a thing so close to actually filing (within next 60 days)?


Asked on 8/30/03, 6:59 pm

1 Answer from Attorneys
Lauren Ross Lauren Ross

Re: Renew or Not Renew Lease?

It shold not pose a problem, particularly if the leasing company is aware of yor intention to file bankruptcy. You should be sure that the lease payment is in an amount that you can afford so there is no issue of fraud or an undue expenditure.

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Answered on 8/30/03, 7:02 pm


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