Legal Question in Credit and Debt Law in Pennsylvania

Re: Auto leasing

When a car is leased, the company has certain rights upon default of the lease. The main right is to repossess. A voluntary surrender has the same effect as a repossession. It simply occurs under circumstances that you control.

Following repossession, the Lessor has the right, which it most certainly will exercise, to collect the balance due under the lease, including any fees and costs resulting from default. To deal with this debt, you can negotiate with the Lessor to repay it. That is usually not practical as there was a reason why payments were not made in the first place. Another option is a Chapter 7 bankruptcy which will eliminate this debt and any other debt, with certain exceptions.

I trust this has been helpful, but you should consult with an attorney to discuss your options. As I handle cases in many different counties and proximity is not an issue due to E-mail and telephone calls, feel free to call or e-mail for a free initial consult.