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Turning in a Damaged Leased vehicle

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    Turning in a Damaged Leased vehicle

    We are broke. Declaring Ch 7 (no asset) Bankruptcy. Wife was in an accident last year - totally the other guys fault. We received a $3500 check for repairs and instead of fixing the car we had to spend it to survive: Rent/Health Ins./Food, etc. with the intention of fixing the car before the lease was up when the economy got better for me.

    Well things turned worse and we can't afford anything.

    This damage on the vehicle that is being surrendered has already been paid for by the damaging party via insurance payment. But we are declaring BK and most of our debts are being wiped.

    Can we be countersued at a later date for that money or more?
    For the $3500? Or for the full amount of loss?
    Was this a criminal violation in any way, IE should we find alternate ways to finance the car so it doesn't go back to the financing co(title owner) damaged?

    If we don't turn it in - we will have to repair and turn it in by Feb 2009 anyways, and there is no guarantee that we will be able to repair it by then anyways.


    Thank you for your input in advance.

    #2
    I don't think that rises to the level of criminal action, but I have strong sense that the repair cost to the car would be a debt that the leasing company would object to discharge.

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