Assumption of Car Leases in Chapter 7

26 Feb Assumption of Car Leases in Chapter 7

Section 365(p)(2) of the Bankruptcy Code now permits individual chapter 7 debtors to “assume” leases of personal property (like cars). Formerly, only the trustee could assume leases in Chapter 7. This has significance for debtors who lease a car and want to maintain the lease during and after a Chapter 7 case.  The process of such assumption has recently benefited from some judicial explication.  In the recent case of In re Creighton, 2007 WL 541622 (Bkrtcy.D.Mass. 2007) Judge Somma held that a debtor seeking to assume a lease had to do so in accordance with the reaffirmation procedures of Section 524.  These provisions have been made more complex under the new code so the assumption of consumer leases should be accomplished with the advice of counsel.

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Nicholas Ortiz, Boston Bankruptcy Attorney

From Attorney Ortiz: We have been helping consumers and small businesses in Massachusetts successfully navigate through the bankruptcy process since 2002. We offer free initial consultations and payment plans. Call us at 617-716-0282 to discuss your debt relief options. Mention the Bankruptcy Law Network when you call!
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