I have a lot of people that come to my office who are leasing or making payments on a car.  These clients signed the lease or payment plan at a time when they were making fairly good money and could easily afford the payments on the vehicle.  However due to drastic changes in the economy, employment, and other relevant factors my clients can no longer afford to make payments on their vehicles.

Another situation I see a lot is clients that are current on their vehicles but their car is completely upside down (the value of the loan exceeds the value of the car significantly) or their interest payments on their car is high (10% or greater).

In both of the situations listed above, if the debtor files for bankruptcy, they have the right to keep (reaffirm) or surrender their vehicles.   If the debtor selects to surrender the vehicle they have the option to surrender it to the nearest dealership or they can schedule a pickup by the lender at a time agreeable by both parties.   If the debtor surrenders the vehicle in the bankruptcy they are no longer responsible for any of the remaining payments on the vehicle, or with any other debts on that vehicle.

If you are thinking of filing for bankruptcy in Boca Raton, Fort Lauderdale, Miami, Plantation or Sunrise and would like a free consultation  then please contact Shmucher Law, PL at 954.309.5559 or 305.741.5553.