Legal Question in Credit and Debt Law in Massachusetts

car lease

My 28 year old daughter is leasing a 2004 Nissan Xtera that she can no longer afford, due to major credit card debt. Is it legal for her to turn the keys to the car back into the dealership that she leases from? She has been late making her lease payments, and 1 month ago, the dealership sent a reposession company after the car. She managed to pay the back payments on the lease, but she really is in over her head. She now realizes that she can no longer afford to keep the car and pay credit card debt off at the same time.

Please advise.

Thank you.


Asked on 9/08/05, 9:50 pm

1 Answer from Attorneys
Raymond P. Bilodeau Law Office of Raymond P. Bilodeau

Re: car lease

It's legal, but it is a breach of contract and the car can be repossessed, or she can voluntarily return it, but the car will be sold at wholesale auction and she will receive a "deficiency notice" for the difference between what she owed, plus the costs of repo, minus what the car sold for.

Since her credit is in tatters, and she is probably paying a high interest rate on her credit cards, she should seriously consider bankruptcy, especially if she is making good money, before October 17, when the new rules take effect.

She will be able to return the car and discharge the balance due, and end all interest on unsecured debt (credit cards and the balance on her car).

My fee for chapter 7 is $750, plus the $209 filing fee (which will also go up after October 17).

Ask her to call me to discuss it. 508-755-1538

Read more
Answered on 9/09/05, 8:30 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Massachusetts