QUESTION
Will I have to pay mileage overage on my car? Why?
Asked on Apr 30th, 2015 on Bankruptcy - Oregon
More details to this question:
I reaffirmed my leased car. Am I going to be responsible for paying any mileage overage once my bankruptcy is discharged? Thanks!
8 ANSWERS
Commercial Attorney serving Columbia, SC
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Gleissner Law Firm, LLC
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The simple answer is yes you will have to pay mileage overage on the leased car. That is why most bankruptcy lawyers do not recommend reaffirming the lease on cars. In fact, most bankruptcy lawyers that represent debtors specifically recommend that a debtor not reaffirm the lease. You asked the question why. When you reaffirm an obligation, you are telling the court you want the obligation treated as if the bankruptcy never happened. Thus, all of the terms of the lease, including your personal liability for mileage overage, are reaffirmed.
Answered on May 06th, 2015 at 4:36 PM
If you do not revoke the reaffirmation agreement (you must do this within sixty days of the court approving same), you will be responsible as if you never filed bankruptcy.
Answered on May 05th, 2015 at 12:19 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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When you reaffirm a debt, you're obligated to make the payments under the agreement. That would include mileage overage.
Answered on May 04th, 2015 at 7:15 AM
Deborah F. Bowinski
Yes. If you reaffirmed your lease contract that means that you agreed to be responsible for all the terms of the lease agreement as it was written.
Answered on May 01st, 2015 at 11:15 PM
When you reaffirm a debt, it is as if you never filed bankruptcy on that debt, so yes, you will have to pay whatever charges are required by your vehicle lease.
Answered on May 01st, 2015 at 11:03 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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I don't suppose it matters whether you 'reaffirmed' the lease, or 'assumed' it. In either event you have accepted the condition of the lease contract. So if you have an obligation under the lease to pay for excess mileages, the bankruptcy will not affect it. Discuss this with your bankruptcy lawyer, who may have more information about your particular arrangement. Good Luck.
Answered on May 01st, 2015 at 12:02 PM
By reaffirming the car lease you agreed to be bound post-Discharge to all of the terms and conditions of the Lease Agreement, which would include the mileage overage provisions.
Answered on May 01st, 2015 at 8:46 AM
If you reaffirmed the lease, then you are bound by the original terms. If they include extra charges for extra miles, you are obligated to pay them. If you haven't received your discharge yet, however, it is not too late to change your mind and surrender the car, in which case you could get out of the lease without paying anything other than perhaps usage from your filing date.
Answered on May 01st, 2015 at 5:36 AM