Legal Question in Bankruptcy in Pennsylvania
Leased Car
I have a leased 2000 Saturn for three years that started Feb/2000. I might have to claim Bankruptcy but willing to pay my monthly payments. Can I keep this debt out of the Bankruptcy?
2 Answers from Attorneys
Re: Leased Car
You must include all debts in the bankruptcy filing, including executory contracts such as car leases. If you are and remain current in your payments, you typically are able to continue the lease and retain the car for the duration of the lease. This applies in both Chapter 7 (liquidation) and Chapter 13 (reorganization) bankruptcy.
This is general information for discussion purposes and is not legal advice. You should consult an attorney about your specific legal problem.
Re: Leased Car
Unfortunately, or perhaps fortunately, the debt will be included in your bankruptcy case,
however, you may retain the vehicle if you continue to make current payments on it.
In my practice I have noticed that lease cos. generally do not renew leases if the person has been in bky. Inclusion in the bky case protects the debtor in the event that he defaults on the lease.
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