General Bankruptcy Questions

March 11th, 2007 by Questions

We live in Ontario. We believe that we have no choice but to file bankruptcy. We owe over $40,000 in credit card debt and cannot make the minimums. We have a mortgage of $236,000 as well as a lease from Chrysler Credit.
We have 2 main questions.
First, there is only 1 year left on our lease from chrysler. We have never missed a payment or been late. We have read that we could keep our lease during a bankruptcy, but what we would like to do is go lease another vehicle with say Ford Credit BEFORE we file for bankruptcy so that we would have a vehicle for at least 4 years because we know it will be difficult to get credit after discharge. We would let the Chrysler vehicle go in the bankruptcy but would want to keep the new Ford. The question is – would Ford credit allow us to keep the leased vehicle once we file for bankruptcy – say in about 2-3 months or would they take it simply becuase it is a “new lease”?
Second question – our mortgage has 2 years left on the term, we have never missed a payment and never been late. Will they consider renewing in 2 years after our discharge if our payments remain on time? What are the odds of them “non-renewing”? The mortgagor is Wells Fargo.


One Response to “General Bankruptcy Questions”

, A licensed trustee said:

Unfortunately, once you start asking how specific companies may react you step outside the area of our expertse. We can tell you whether or not we think they may act in a certain way, but the only way to be certain is to contact the companies yourself and ask them.

In regards to your plan for the car – this strategy has been followed by many people in the past sucessfully. At the end of the day, it will be up to Ford (or whomever you lease the new vehcile with)to decide whether or not you are still credit worthy.

In regards to the mortgage, generally speaking unless you are deliquent in your payments you mortgage company should renew your mortgage when it cmes due. Once again, to be certain, contact the mortgage company and ask them before your file for bankruptcy.

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