If you are considering filing bankruptcy, you may be wondering whether you can keep your lease.
If you are current on your lease you can typically keep it in both a chapter 7 and chapter 13 case.
In a chapter 7 case, the lease lender may ask you to sign an assumption of lease in order to keep your leased asset. Whether you should sign or not is up to you, but the options and the pros and cons of each should be discussed with your attorney.
In a chapter 13 case, you will write whether you assume or reject the lease into your bankruptcy plan. Payments must stay current on the lease, if you want to keep it.
If you are behind on the lease and want to keep it in a chapter 7, you will have to catch up payments. In a chapter 13, generally, behind payments can be caught up in your bankruptcy plan.
What if your lease is behind and at first you wanted to keep it, but now you do not? In a chapter 7 as long as the creditor was listed and you didn’t assume the lease, you can include the lease in your chapter 7 discharge. You will need to return or give up possession of the leased asset though. In a chapter 13, you will need to complete a modification of your plan with your attorney to say you no longer assume the lease and instead plan to surrender.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
Leased assets are very common, from boats, cars, housing, and trailers it is nice to know what options you have and if you can keep them when you file for bankruptcy. Visit www.lifebacklaw.com to speak with an attorney today. You will be glad you did!
