Vehicle leases and consumer proposal
September 7th, 2006 by Questions
If i return my leased vehicle 6 months before the end of the term – the lease no longer becomes secured right?? Can the balance owing to the lease company then be considered un-secured debt to be included in a consumer proposal with my credit card debt??
I will owe $12,000 at the end of May 07 plus additional mileage of $4000. and any excessive wear and tear. I\’m looking to meet with a trustee to discuss a consumer proposal for my credit card debt and in order to be able to handle the monthly payment for the credit cards – i need to get rid of my monthly vehicle lease of $600.
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September 08, 2006 at 12:52 pm, A licensed trustee said:
Your right on the money (no pun intended). If you surrender your car prior to filing (or as part of filing) then any money you still owe the leasing company will be dealt with in/by your proposal or bankruptcy.
The goal of either of these plans is to solve your financial problems – if getting out of an expensive car lease will help sort out your finances then you will be encouraged to do so.