Can I apply for a car lease during bankruptcy.
May 22nd, 2008 by Questions
i wish to get a car lease. As my car payment is too high to maintain.My bank has offered to take it back. Am I breaking any laws applying for a lease while in bankruptcy. as I need a lower payment and a fuel efficient vechicle.
Posted from: Nova Scotia
One Response to “Can I apply for a car lease during bankruptcy.”
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May 23, 2008 at 9:04 am, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:
The only obligation you will have is that you must disclose to the leasing agency that you are currently in bankrutpcy. Failure to do this is considered an offense under the Bankruptcy and Insolvency Act and can cause you problems when it comes to discharge time. Otherwise, as long as you have made proper disclosure there is nothing wrong with leasing a vehicle while in bankruptcy.
However, be careful when returning a vehicle to the bank as you will likely be charged for the shortfal of the loan (i.e. value of vehicle less sale cost of returned vehicle plus penalties and administration costs). So it may not be as inexpensive as you originally thought.