If you are leasing your car when you file Chapter 7 bankruptcy, you can choose to either continue making the monthly lease payments or surrender the car back to the creditor. If you surrender the leased car, any obligation to repay debt will be eliminated in your Chapter 7 bankruptcy case. read more
If you decide not to keep the car or you cannot afford the payments, you can surrender it (give it back). Surrendering the car will wipe out your entire debt liability. The creditor will either have to wait until your bankruptcy before repossessing the car or file a motion with the court asking the court to lift the automatic stay that prevents collection actions. read more
If you do not redeem your car or enter into a reaffirmation agreement, you can continue to make your monthly payments to your car lender. However, because of the bankruptcy discharge, you are no longer obligated to do so. read more