Legal Question in Credit and Debt Law in Indiana

Breaking of Automobile Lease

Please tell me the ramifications of having an automobile repossessed. I currently have a lease that I can no longer afford and the payoff is very overpriced. I want to have the car repossesed. I have excellant credit and what to know how much damage this will cause. How long will it stay on my credit report? Will I be able to refinance my home? Buy a car?


Asked on 6/19/01, 4:23 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Breaking of Automobile Lease

A repossession is usually viewed by other creditors as a strongly adverse event. It stays on your credit report for many years, at least seven years. You will still be able to get credit, but it will cost quite a bit more. So, you should try to work with the leasing company to find someone to take over your lease. Your lease agreement probably has a provision about this. You can advertise, just like your were selling the car.

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Answered on 6/29/01, 1:10 pm


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