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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I Filed a chapter 7 about 8 months ago, and received my discharge

Resolved Question:

I Filed a chapter 7 about 8 months ago, and received my discharge 3 months ago. I included my auto lease in my filing, and did not re-affirm. I kept the car and have continued to make payments. The leasing company has accepted the payments, and did not request that I return the car. On my credit report it shows that account ‘closed’.

I have 6 months remaining on the lease, but do not want to continue. If I return the car early, can they come after me for the remaining payments? Was the contract essentially voided by the BK? Do I have any remaining liability?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
If you stop paying the lease - whether or not you return the car, and whether or not the car is re-possessed - the leasing company cannot try to collect the money from you. Your Bankruptcy discharged your liability for the car lease, even though you had continued to make the payments.
The Bankruptcy effectively voided part of the contract - mainly the part where you agreed to pay the monthly lease amount.

I think this is what you wanted to know. If not, please let me know.
Thank you!
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