Car Lease And Ch. 7
I may be in the situation that I will have to file a Ch 7 very soon. It is my understanding that if we have a car worth over $5000 and it's been paid off, I will loose it. We definitely need to keep at least one vehicle in our family, so I'm thinking about selling our car and leasing another one. I thought that there is no way I can loose a leased car, because it's not my property, it's just a long-term renting. However, I've heard that I still have to be careful and make a minimal downpayment, because I might loose it as well. In our state if I'm buying a car and have over $5000 in equity I'm loosing it. But there is no equity in leased vehicle. Could you please clarify the situation for me about leasing a car before filing the Ch. 7? What I should be aware of? I would appreciate your comments very much.
Answer:
This type of pre-bankruptcy planning is something you should review with a local attorney before you file. Different states have different ways of dealing with this issue.
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