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Debtors can reject a lease and give up the property or assume the lease to keep the leased property. Debtors have the responsibility and are required by the bankruptcy law to "assume" a lease if they want to keep the leased property.
But a debtor must remember when he or she keeps the property, he or she keeps all the obligations. The most obvious obligation is the over-mileage fees. If the debtor has already driven the car over the contracted mileage rate, it might be a good time to give up the car in the bankruptcy and prevent any additional fees.
Another consideration might be the performance of the car. Has it been a maintenance burden... not quite a lemon but far from being cherry? Maybe it is a good opportunity to dump it and to find something else.
Whatever the result, a Debtor should make sure it was a thoughtful decision. If the lease is a burden, rejecting the lease and giving up the car may be the best decision.
If you want assistance, legal representation, or just want to know more about me, Mark M. Medvesky, or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.
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