Car Lease showing in accounts in BAD standing...

[justbroke]

I am absolutely going to keep my insurance, I am just worried that Allstate would drop me.

Absolutely no reason for them to drop you. They have no basis to drop you. The only thing they care about is your driving record and whether there are any recorded liens or leases on the car (so they know who to pay in the event of an insurable incident).

That's it. They're happy to take your money.

[debtfreeplease]

I am absolutely going to keep my insurance, I am just worried that Allstate would drop me.

[justbroke]

I will probably keep the car because I need transportation, it just upsets me that it won't help my credit by continuing to pay on time. It even shows on my credit report that I owe them $0. Is this going to affect my auto insurance? Will Allstate continue to insure me for a car that I don't owe anything on and technically isn't mine?

It technically is yours. Until you surrender the car, the Lender (Nissan) only has a lien against the car.

The insurance is to cover your liability mostly, and then, as a secondary, any damage to the vehicle itself. You need to maintain this insurance for many reasons.

I have one car that I own outright and I have only liability on it. Having liability insurance is compulsory in almost all States.

[debtfreeplease]

Ansky did you have the same thing happen and you had no issues with your insurance?

[ansky0007]

I will probably keep the car because I need transportation, it just upsets me that it won't help my credit by continuing to pay on time. It even shows on my credit report that I owe them $0. Is this going to affect my auto insurance? Will Allstate continue to insure me for a car that I don't owe anything on and technically isn't mine?

There will not be any issues.. On a good note it probably would not hurt you if you needed to make a payment late.

[debtfreeplease]

I will probably keep the car because I need transportation, it just upsets me that it won't help my credit by continuing to pay on time. It even shows on my credit report that I owe them $0. Is this going to affect my auto insurance? Will Allstate continue to insure me for a car that I don't owe anything on and technically isn't mine?

[justbroke]

If I give the car back would it show as a reposession?

Nope. It's already "included in bankruptcy" IIB. This is better than a repossession.

I am so confused right now... if I am no longer responsible for this debt and say the car got totaled... what would happen? Nothing? What would happen with my auto insurance? Would they send Nissan a check, or me a check, or would they do nothing?

If your car got in an accident, you could have all sorts of liability issues! that's why you need to maintain insurance.

Right now, your automobile insurance probably STILL reads that it's a lease/lien and specifies who the payee is (Nissan).

I think you're not understanding your decision, or are having problems with your decision. You need to sit down, work the numbers, see if this lease is what you want for the next XX years.

Also, if you decide to not continue the lease, you need to figure out what it will be like to attempt to get a "new" car. Your credit is already taking hits, and I bet it went down at least 100 points on the day you filed.

Remember, they relieved you personally of the debt, but the car belongs to Nissan. Any proceeds from any insurance settlement, would be theirs.

[debtfreeplease]

I am so confused right now... if I am no longer responsible for this debt and say the car got totaled... what would happen? Nothing? What would happen with my auto insurance? Would they send Nissan a check, or me a check, or would they do nothing?

[debtfreeplease]

If I give the car back would it show as a reposession?

[justbroke]

I told the person at Nissan that I wanted to keep the car and continue to pay and she said this is fine, but that they don't do reaffirmations on a lease. So does it not really make sense for me to continue paying on this if they are going to continue to negatively report...

That's a great explanation as to why it's negative. Since they don't do re-affirmations, you are basically free to walk away from that car at any time! The value of the lease is Included in Bankruptcy (IIB), and has been correctly listed on your credit report.

As for why keep the car... your credit is already dinged. It was going to be dinged anyhow... even if you surrendered it.

[ansky0007]

I told the person at Nissan that I wanted to keep the car and continue to pay and she said this is fine, but that they don't do reaffirmations on a lease. So does it not really make sense for me to continue paying on this if they are going to continue to negatively report...

But the harder issue is how will you get a replacement vehicle at this time if you decide to give it back. Unfortunately I waited too long to try and buy a replacement car before filing and with my credit I am screwed because I cant buy a new car (Credit shot) and I dont want to reaffirm one of my vehicles so I am going to have to buy a $1000 junker soon when they come and get the one I am surrendering.

[paintinrosesred]

If you reaffirm the lease and keep paying will it show in good standing and have a positive affect on your credit in the long run?

[debtfreeplease]

I told the person at Nissan that I wanted to keep the car and continue to pay and she said this is fine, but that they don't do reaffirmations on a lease. So does it not really make sense for me to continue paying on this if they are going to continue to negatively report...

[justbroke]

Yes, this is correct. You are technically not responsible for that Debt to Nissan, even though continued to pay the lease. Did you or your lawyer Motion to Assume the Lease? (Just wondering?) Because this is a fresh case, Nissan has no clue what you're going to do. Their assumption is that you'll Reject the Lease, and they are stuck with the car.

This will be reported as Included in Bankruptcy (IIB) for 7 years. As for your student loans, they are non-dischargeable, so their status will just reflect what is true today.

[debtfreeplease]

I filed Ch. 7 on 10/31, and have continued paying on my car lease. However, I checked my credit report this morning and Nissan is reporting my lease as a bad account. I called Nissan and asked if that will change once i get my discharge in about 3 months, but they said that it is going to remain in bad standing because it was included in bankruptcy. Does this sound right? I don't understand why if I continue paying on it, it will still be reported as negative. Is this going to happen to my student loans too? It hasn't yet...