March 25th, 2008 by Questions
I have a new car lease (3 months) and now I`m considering filing a Consumer Proposal. The trustee informed me that the Car Lease is included in the list of creditors and the total debt outstanding which brings the total very close to the maximum of $75,000. Why is the Car Lease included and could the Leasing Company cancel the lease because of the proposal?
One Response to “Car Lease”
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March 26, 2008 at 8:10 am, Barton Goth GCO Bankruptcy Trustees said:
The first issue is that of the value of the lease. This is largely out of the hands of the trustee, but from whay you are saying must differ quite substantially across the country. For example, here in Alberta the Superintendent of Bankrutpcy has instructed us to value all leases at $1.00 so that this problem is avoided. So that is what we do, however if your local Superintendent requires something else there is really nothing you or the Trustee can do.
As for the calling of the lease, technically in most leases they have the ability to call the lease upon the implementation of any insolvency proceeding (including the filing of a consumer proposal), but very rarely is this done.