Filing for bankruptcy can impact existing and future car leases. Depending on how up-to-date you are on your lease payments can determine what happens when you file bankruptcy. A professional bankruptcy attorney can help you find the options that best fit your situation.
Automatic Stay and a Trustee’s Choices
An automatic stay halts any collection action by a car lessor, including efforts to repossess a vehicle. However, if you are behind on payments, the lessor may file a motion to have the automatic stay lifted. If this happens, the lender may pursue collection of the debt.