Consumer proposal and vehicle leases
September 7th, 2006 by Questions
I\’m trying to avoid bankruptcy and am considering a consumer proposal to negotiate credit card debt acquired because of a failed business. With a proposal – I will be able to handle the credit card payments. The problem is my vehicle lease -the vehicle was acquired and paid for by the business, – the business is now closed. I\’ve attempted to negotiate with the lease company to waive penalties, take the vehicle and let me out of the lease – I would pay any mileage over fees. However if I go bankrupt – the lease company will lose out -I\’m trying to make this clear to them – but they won\’t budge.
can vehicle leases be included in the consumer proposal??
thanks – your blog is very informative
One Response to “Consumer proposal and vehicle leases”
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September 08, 2006 at 12:42 pm, A licensed trustee said:
I am not certain that I understand your problem. If your intention is to file a proposal (or bankruptcy) then simply return the car to the leasing company. They will see it at auction and then contact you for whatever money you may still owe them for the car. This debt is treated just like a credit card bill and will be included in your proposal or bankruptcy.