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    Continue with lease or surrender vehicle?

    I will be filing for chapter 13 in October, and I've been contemplating whether or not I should keep my audi Q5 lease or surrender it. My attorney told me that I have the option of keeping or surrendering it. I am not sure if the trustee or judge will allow me to keep it, especially since I am below the median. Also, if I do end up keeping it, my lease is up in January 2012, and what problems will I run into then? My wife is not filing, so I think I can always get another car under her name or under my wife's business. What do you recommend? Thanks in advance.

    #2
    Being a high end sport/luxury SUV the court may look upon this particular vehicle as an unnecessary expense. Your attorney may suggest surrendering it to show your willingness to repay other creditors under a bk13. However, if you are below the median why are you not considering bk7?. Just my opinion.
    Filed July 2009. Discharged 08/08/2014. Awaiting closing. We made it !!!! Woo-hoo!

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      #3
      Originally posted by andy158 View Post
      Being a high end sport/luxury SUV the court may look upon this particular vehicle as an unnecessary expense. Your attorney may suggest surrendering it to show your willingness to repay other creditors under a bk13. However, if you are below the median why are you not considering bk7?. Just my opinion.
      Hello, I am filing chapter 13 because I would like to keep my house, and since my first is underwater, I will be lien stripping my second.

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        #4
        I agree with Andy though, some trustees have a HUGE problem with what they consider "luxury" vehicles (even if they are used/lower end models). Depending on how much the payment will be, you might still have a problem with the trustee because of the brand. Some trustees might even be inclined into looking at your expenses more closely since you are trying to keep a "luxury" car. It might be better to surrender it and get another car. In my opinion you should fly as low as possible and stay under the trustee's radar as much as you can.

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          #5
          It's all about it's current payment - how much over $500 is it??

          We were able to keep 2 cars @ $600 & $650 but they gave us a real hard time about it.
          19% dividend

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            #6
            Originally posted by TexasEx View Post
            I agree with Andy though, some trustees have a HUGE problem with what they consider "luxury" vehicles (even if they are used/lower end models). Depending on how much the payment will be, you might still have a problem with the trustee because of the brand. Some trustees might even be inclined into looking at your expenses more closely since you are trying to keep a "luxury" car. It might be better to surrender it and get another car. In my opinion you should fly as low as possible and stay under the trustee's radar as much as you can.
            Thanks for the advice, I definitely want to fly as low as possible. The payment on the audi is $760, I was hoping I could save from paying another down payment.

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              #7
              Ugh. Yeah, I'm not so sure a payment that high will fly without you getting hassled significantly.

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                #8
                If it was a joint filing and your only car payment, it could fly. But as single filer, you would have to seriously cut other expenses to keep it if it's even possible. You should surrender and attempt to get a new car payment allowance of like $450 included in your plan to replace it. I was able to do this with mine, so once my lease ends (11 months into my 5 year plan), my plan payment is reduced by $460 to replace it.

                It also depends on your lease-end date, if it's only a year or so out you can petition to keep it, but then put any extra towards your plan once the lease ends. My lease was @ 600 for a Mercedes and my trustee was annoyed but accepted the fact it was only 11 months more (he told me this directly in my 341) and told me my new car must be less so I was able to get him to approve $460/month in the plan once the lease is up.
                19% dividend

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