Re: Car lease
I had leased a car in Sept ’03 and filed for bankruptcy shortly after. Honda Canada was listed as a creditor, however i continued making the monthly payments until 3 months ago when i could no longer afford the insurance and payments. I took the car back to Honda last month and was under the assumption (because i had explained the situation to a lady at one of the dealerships) that since I had filed for bankruptcy, that they couldn’t come after me for the pre-turn in penalty. What can I do??
A bankruptcy only clears you of outstanding obligations as of the date of bankruptcy. In order to have the penalty cleared by the bankruptcy you would have had to stop making payments as of the date of bankruptcy and return the car shortly thereafter. As a result the bankruptcy will have no bearing on this transaction. Ultimately you are responsible this amount is paid in full and must make arrangements with Honda Finance to pay this debt over time. If they are unwilling to do this you may consider a consolidation loan or even contacting a credit counseling agency as they may be able to assist you with this.