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Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31379
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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can a leased vehicle be included in cpt 13 ?

Customer Question

can a leased vehicle be included in cpt 13 ?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 5 years ago.

Kirk Adams :

Hi - my name is Kirk and I'm a Bankruptcy litigation attorney here to assist you.

Kirk Adams :

Generally, a vehicle lease cannot be included in a chapter 13 repayment plan. Instead, the lease would have to be paid outside of the payments you make to the trustee.

If you reject a vehicle lease in a Chapter 13 case, the creditor will sell the leased vehicle, apply the sale proceeds to all obligations pertaining to the lease, and file a claim in your bankruptcy case for the lease deficiency. Such lease deficiencies are treated as non-priority unsecured claims and would be paid the same percentage as all of your other unsecured creditors in this category

Expert:  Roger replied 5 years ago.

Generally, a vehicle lease cannot be included in a chapter 13 repayment plan. Instead, the lease would have to be paid outside of the payments you make to the trustee.


If you decide not to keep the vehicle, it will have to be returned to the creditor, who will sell it and apply the proceeds to your loan balance. Any amount remaining would be classified as an unsecured debt and is generally discharged.

Expert:  Roger replied 5 years ago.
Here's a good link that outlines the law and options regarding a vehicle lease and bankruptcy: http://www.advantialawgroup.com/index.php?option=com_content&view=article&id=56&Itemid=103