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Brought car current now BK7 keep or lose?


ndkblondie
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Hi all,

I was 90 days late on our car LEASE and agreed to let them add the late payments onto the back end of our loan to get us back on track so we wouldn't lose the vehicle.

Now we are about to file chapter 7 and I'm trying to figure out what our future bills will be. The car is way to expensive for us to keep on our current income but we are current on our payments for now. If we are current, will we be able to include it in our bk? Do they sometimes negotiate a new payment schedule for an auto in 7 or only in 13?

If we have to keep it because it's current I'd rather start being late on it again before I file because I know we won't be able to keep up with it later.

Thank you!

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If you can't afford it on your current income, just let it go back. You list the unexpired lease on your BK paperwork and that you'll be returning the car - not a thing they can do about it. You're better off looking for something cheaper that you can buy with cash that'll hold you for at least a year.

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You don't have to keep the vehicle.

You list the lease on schedule G (always), and then the lease company is listed in schedule F if you intend not to honor the lease so that they receive notice of filing on the creditor matrix. This will make sure that your personal liability is discharged.

http://www.uscourts.gov/bkforms/official/b6g-inst.pdf

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Ok, got it. It goes on schedule G and then you tell them if you are going to honor the lease or give it back on schedule F. What about them helping you to re-negotiate the lease so your payments are lower and you can keep your vehicle? I think I've heard about this happening, is this possible?

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