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A: When you file a bankruptcy, you are required to list all creditors, including an auto loan or lease company. The law does NOT allow a partial list. However, you may decide to reaffirm debts to particular creditors by signing a reaffirmation agreement. In most situations, it only makes sense to reaffirm only secured debts.
Although breaking a lease can hurt you, it is in your best interest to break the lease a part of filing for bankruptcy. Breaking the lease as part of your bankruptcy is better than breaking the lease afterwards. Verify with your lawyer to make sure that it is true in your state. However, disadvantage of breaking the lease is that you won’t get to use that car, and it will be harder to refinance the next car.
The best way to rebuild your credit is to make payment on time after bankruptcy. Nevertheless, you need to keep in mind that bankruptcy will make harder for you to get the next loan. In addition, it will increase your financing costs. Typically, bankruptcy will stay on your record for two years.
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