Auto Lease
I am in the process of a consumer proposal (meeting on November17/08 to see if proposal accepted by creditors).
I have a leased vehicle with GMAC and I CANNOT afford the payments anymore. I have made one payment since I signed my consumer proposal. What happens if I stop making the payments NOW? Does the remaining monies owed to GMAC for the lease (approx $3000) get included in my proposal? Or will I owe this separately after all is said and done. I know that they will repossess the vehicle. I am okay with that… I just need to know if after all of this if I am going to be required to finish my obligation to GMAC or if it is automatically included in my proposal, and I do not have to worry about it.
Posted from: British Columbia
You really should be having this conversation with your trustee – not a free website…
Legally, since you’ve made a payment on the lease since you filed, GMAC can justifiably consider themselves to be excluded from your proposal. As a secured creditor they are not normally included and since you’ve made a payment you may have “re-affirmed” the contract.
That being said, if you’ve only made the one payment your trustee can likely finess the car lease into the proposal – you should contact your trustee and find out what you need to do to surrender the car to GMAC immediately. Certainly don’t make a second payment…