Can you buy your leased car in bankruptcy?
Dear Driving for Dollars,
I filed for bankruptcy, but kept the house and the cars out of the filing. One of the cars is leased and I want to buy it when the lease is up in about 18 months. Can I?
The bankruptcy filing won’t prevent you from buying your leased car, but it might stop you from getting a car loan or at least, a good interest rate to buy that car. Your bankruptcy will remain on your credit report for seven years in a Chapter 13 bankruptcy or 10 years in Chapter 7 bankruptcy. So, lenders are likely to be less likely to give you a loan, or they may charge you a much higher interest rate on a car loan. Since you have 18 months before you want to buy the car, do what you can to re-establish your credit now. Make sure you have a steady source of income, stay current on all your bills and look into getting a smaller car loan that can be paid off before you need to apply for the car loan.
Ask the adviser