Legal Question in Bankruptcy in Pennsylvania

Re: Chapter 7- leased vehicle

You can reaffirm the lease, keep the car, and continue to pay on it. You would list debts, not credit cards, so any with zero balances would not be listed.

Bankruptcy cases in the Philadelphia area are filed in U.S. Bankruptcy Court in Philadelphia. Please feel free to contact me if I may be of assistance.

Re: Chapter 7- leased vehicle

There is a technical answer and a practical one. The technical answer is that all leases in a no asset, Chapter 7 case are deemed rejected because they are not assumed by the Trustee. That technically means that you will no longer have a lease.

The practical answer is that the lease is unaffected, with one exception. If you default in the future, the lessor cannot pursue you for the balance because it was discharged in bankruptcy. So you get all of the benefits with no long-term risk.

Regarding the credit cards, the Trustee could require that you eliminate them, but I have never seen that happen. However, I have seen creditors close an account because they check the credit report and learn of the filing. Also, you may not borrow money during the case.

I trust this has been helpful, but feel free to call or E-mail on a free initial basis. Although my office is in Chester County, I have been a resident of Montgomery County, for 30 years and am a member of the Montgomery County Bar Association and Bankruptcy Committee.