Archive for March, 2009

Question: Can a vehicle leasing company ask for the remaining payments on the lease if they repossessed the vehicle due to non payment if an individual has not filed for bankruptcy? Can they do this if an individual has filed for bankruptcy?

Answer: Yes, if you have not declared bankruptcy, you are liable for all outstanding payments on a leased vehicle. In most cases the leasing company will sell the vehicle to recover the amount owing; if there remains a balance owing, they will pursue you for the difference.

If the vehicle is repossessed or surrendered prior to your bankruptcy, any remaining balance owing is included in your bankruptcy; in that case they cannot pursue you for the remaining payments.

Question: We have a joint line of credit. I have zero access to the line of credit, and the debt is 100% his. I know that I will be responsible for it, and will have to pay it.

My question is, how will this affect my credit report? Will it show as a bankruptcy?

Answer: You are correct, you will be responsible for the debt. We suggest that you contact the bank and work out payment arrangements with them. If you keep the loan current, it should not have a negative impact on your credit report, and since you have not gone bankrupt, a bankruptcy should not appear on your credit report.