Will I be Able to Keep My Leased Car During Bankruptcy?
The answer is yes. However, certain conditions are going to apply. If the leasing company agrees, you can keep a leased vehicle if you continue to make your lease payments. Many leasing agreements contain a clause that states that “in the event of insolvency, the leasing company can terminate the lease, and repossess the vehicle”. Legally, they can repossess the vehicle, but they usually prefer to get ongoing lease payments. Your leasing company is a secured creditor and they will hold your car as security. If you are experiencing financial issues, it could be because your expenses are too high each month. We highly recommend that you speak with a Licensed Insolvency Trustee for some advice.
MORE QUESTIONSDo I qualify for bankruptcy? How long will I be bankrupt? How much will it cost? How will my credit rating be affected? If I declare bankruptcy, will I lose everything? Should I declare bankruptcy? Will I still be responsible for some debts after filing for bankruptcy? Does Filing for Bankruptcy in Canada Affect My Spouse? What is a bankruptcy discharge and the process involved? What is the OSB and what are their responsibilities? If I file a proposal or declare bankruptcy, what happens to my credit rating? What happens if my creditors vote against accepting my consumer proposal? Can I leave some creditors out of my consumer proposal? How Do I Get a Mortgage After A Consumer Proposal? Can a student with a government student loan go through bankruptcy or get a consumer proposal?