Getting out of a vehicle lease by “rejecting” it in Chapter 13 isn’t quite as quick as in Chapter 7 but has about the same practical effect.
Vehicle leases are often not such a good deal. If you find out your isn’t, you can almost certainly “reject” that lease and pay no more.
If you are concerned that in a Chapter 13 case a debt resulting from surrendered collateral will cost you more, often it won’t.
Sometimes, even if what you bought is legally collateral on a debt, you can just write off and not pay the debt yet keep what you bought.
A secured debt effectively turns into an unsecured debt if you surrender the collateral, which may make sense to do more than you think.
A secured debt can be handled like an unsecured debt if you surrender the collateral, “avoid” a judgment lien, or just keep the collateral.
Chapter 13 can be an effective way to keep or unload business and investment real estate.
If you are filing a Chapter 13 case for other reasons, it’s also a good opportunity to get rid of your vehicle lease if you want to do so.
If you are leaving your mortgage(s) behind, what are the advantages and disadvantages of doing so within the two main bankruptcy options?
If you owe a debt secured by your personal property–furniture, appliances,computers–here’s what bankruptcy can do with these debts.
Chapter 7 puts you in the driver’s seat to either keep or surrender the collateral securing your business debts.