Chapter 7 Bankruptcy - Should I Reaffirm a Car Lease?

Chapter 7 Bankruptcy – Should I Reaffirm a Car Lease?

When you file Chapter 7 bankruptcy in Georgia, I don’t think you should ever reaffirm a car lease.

Chapter 7 bankruptcy gives you the chance to be free from your debt.  When you reaffirm a debt, you basically agree to treat to the debt as if you have never filed bankruptcy against it so that you can keep the collateral. Why would you ever want to reaffirm a car lease?  Many Georgia consumers don’t realize how much money they are going to have to pay the car company at the end of the lease because of the fees for going over the mileage limits.  Any person who is considering reaffirming a car lease should review the lease carefully with their bankruptcy attorney and try to make an estimate of how much money you will have to pay the car creditor at the end of the lease.

A car lease deal usually starts with a buyer walking onto the car lot dreaming about some luxury vehicle.  You look and the shiny exterior and wonder in amazement as to how anyone could have designed such a beautiful car.  You open the car door and smell the leather.  You sit in the driver’s seat and feel comfort like you have never felt in any other car.  Then, you put your hands on the wheel and imagine yourself driving fast on the Georgia mountain roads with the top down.  Next, you get out of the car and look at the price tag.  Reality slaps you across the face and steals your dream.  But wait!  Here comes the car salesman!  So what if you can’t afford to “buy” the car.  You can “lease” it and drive it home today.

Ask yourself this question, “If they won’t let you buy the car because you can’t afford it, why would they let you lease it?”  The short answer is that they get to take advantage of you when you get suckered into a lease.

Chapter 7 bankruptcy is the time to get free.  It is not the time to put debt shackles on your hands and feet.  Don’t reaffirm the car lease!

Other Posts:

1. What is Chapter 13?

2. What is Chapter 7?

3. How much does it cost to file?