What is covered by the filing of a bankruptcy?

March 12th, 2010 by Questions

If I owe money to a car manufacturer for damages to a vehicle that I was leasing, will this debt be a part of the bunkruptcy?
I will return the car once the lease is up and this would be the only money owing from the lease. I have not missed a payment on the lease over a 4 yr term.

Posted from: British Columbia


One Response to “What is covered by the filing of a bankruptcy?”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Yes, these damages should be an unsecured debt and cleared by the filing of a bankruptcy. However, timing becomes very important. The vehicle must be returned prior to the filing of a bankruptcy for this to happen. If you file for bankruptcy first and then return the car at some later point, then you will not be protected from these outstanding amounts.

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