Car lease

[Carmen830]

I am in the process of finalizing the paperwork to submit the petition for filing Ch. 7. My question is - what happens with my car lease? The lease is due to expire in March of 2010. I am up to date on my payments. I told my attorney that I wish to still keep the car, so I believe he put it down as 'reaffirm'. Does anyone know if I will run into any problems in keeping it? I was planning on financing the vehicle at the lease expiration next year. Any input would be greatly appreciated. Thanks!

[laurannm]

We too had a lease when we filed. A lease is considered to be an executory contract (I forget which schedule it is), so technically you don't reaffirm a lease. Instead you choose to either assume or reject the lease. Assume means you wish to continue payments, reject means you wish to either surrender or attempt a ride-through.

You shouldn't run into any problems keeping it. We were even negative on our schedules I/J and had no issues assuming our lease.