Debtor Could Not Reaffirm Lease on Automobile Since §524 Does Not Apply to Leases

Debtor Could Not Reaffirm Lease on Automobile Since §524 Does Not Apply to Leases

This matter comes on to be heard upon the Reaffirmation Agreement (“Reaffirmation Agreement”) filed by American Honda Finance Corporation (“Honda”) and the Debtor.

The Debtor filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code on March 29, 2018 (“Petition Date”). On Schedule G, the Debtor listed a 2015 Honda Civic as being subject to an unexpired lease (“Lease”). The Debtor indicated on Schedule G that she intended to assume the Lease. Pursuant to the Reaffirmation Agreement, the Debtor seeks to “reaffirm” her obligations under the Lease.

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1 Comment

  1. Brian Whitaker

    OK … So …
    1. Is the vehicle property of the estate (since it’s owned by the leasing company)? (re Sched B)
    2. Is the debt to be listed on Sched D?
    3. If the lease is not assumed, does that constitute a breach allowing for repo even when payments current?
    4. If the lease is assumed, are all remaining obligations of the debtor (mileage overage, e.g.) under the lease non-dischargeable?

    Reply

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