lease return prior to bankruptcy

April 21st, 2009 by Questions

We will be filing bankruptcy and I need to return my leased van which I have had for 2 years and have another 2 years in my lease. I cannot afford these payments, can I return it.

Posted from: Ontario


One Response to “lease return prior to bankruptcy”

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

Yes you can return the lease. The easiest way is to simply stop making payments and inform the leasing agent that they need to pick up the vehicle as no more payments will be made.

The key thing is that you want to do this before you file bankruptcy not after. If you return it after a bankruptcy is filed you may not be cleared from the remaining amount under the lease contract. So timing is very important.

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