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Re: Help please. Lease Car in bankruptcy


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Posted by cddfisher (64.12.96.205) on January 27, 2003 at 20:01:34:

In Reply to: Re: Help please. Lease Car in bankruptcy posted by Patsy on January 27, 2003 at 18:26:00:

Patti, are you currently in bankruptcy or are you just trying to find out what could happen? If you are in bankruptcy and have an attorney, you should call and ask these questions. If you are not in bankruptcy but want to know the best thing to do is call a bankruptcy attorney in your area. As a general rule though, leases are not reaffirmed in bankruptcy. Reafs are governed by Section 524 of the Code and allow the parties to a general agreement to allow the agreement to "pass" through the bankruptcy. You can reaffirm under the original terms or in some cases renegotiate. Reafs are totally voluntary by the creditor. Leases are a little different. They are covered by Section 365. Under that section you would assume (keep the lease) or reject the lease. The section is a little complicated but basically how you assume depends on whether the lease is current or not. As a general rule for chapter 7 cases with leases involving personal property, the lease is deemed rejected if you dont assume within 60 days. Some creditors have agreements which are hybrids so they assume the lease and reaffirm at the same time. whether you want to keep the leased vehicle depends on its value and the purchase option price compared to getting a new (or used) vehicle. This is extremely general advice and again, I suggest you speak with an attorney in your area that will understand local practices.


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