Legal Question in Bankruptcy in New Jersey
Does an automobile lease survive chapter 7 bankruptcy?
I have listed an automobile lease as an unexpired lease on the appropriate schedule for Chapter 7 bankruptcy. I have also listed the credit company to whom the lease was assigned on the the list of unsecured non priority creditors because I did not make a payment before filing the petition. The credit company has filed a motion to vacate the automatic stay and the attached order states:''to permit the movant to pursue the movant's rights to the extent and in the manner provided by any applicable contract documents and non-bankruptcy law.'' I would like to return the car but if I choose not to make an appearance and the Bankruptcy Judge signs the order as it is written, will the credit company then have the right to pursue me after the discharge according to the original terms of my lease and non bankruptcy law, or will the discharge of debt preclue them from future actions?
1 Answer from Attorneys
Re: Does an automobile lease survive chapter 7 bankruptcy?
From the facts you have provided it appears that the leasing company simply seeks to repossess the leased automobile. If the debt is scheduled in your Chapter 7 petition for the balance due on the lease, then the debt should be discharged in bankruptcy once you receive your discharge order from the court.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
