Contined Paying On Lease

[himarcstatus]

We had a bankruptcy discharged but continued to pay on our auto lease without reaffirming the debt. My question is if I am unable to pay for the lease now and turn the vehicle back over to the bank, will this count against my credit since the debt was initially included in the bankruptcy?

[justbroke]

No it will not count. The debt was discharged in the Bankruptcy. You would have needed to Assume the Lease in order for it to still be in effect.

(Leases are done by assumption not reaffirmation. A lease is automatically rejected if the debtor doesn't assume the lease within 45 days of filing.)

[himarcstatus]

To "Assume The Lease," would we have had to fill out paperwork or is that done just by continued payment?

[justbroke]

To "Assume The Lease," would we have had to fill out paperwork or is that done just by continued payment?

You actually have to file a Motion with the court to assume the lease. Rejection occurs automatically by statute. You may want to confer with your attorney as to your rights as underlying State non-bankruptcy laws may now apply.

[himarcstatus]

You actually have to file a Motion with the court to assume the lease. Rejection occurs automatically by statute. You may want to confer with your attorney as to your rights as underlying State non-bankruptcy laws may now apply.

Thank you for your help! We will follow up with the attorney. If we are using our bankruptcy to get a fresh start, we don't want to screw it up already.

Thanks again!