We potentially may have to claim bankruptcy in a law suit that is not going our way. We want to lease a vehicle in the next week or two. This judgement may not be until January or February or next year. Could this affect our decision on the lease and what would be my limitations on leasing a vehicle? can I only have so much equity in the lease?

If you have an ongoing lease when you file for bankruptcy you would usually continue to pay on it to keep the vehicle. It is very rare for a leased vehicle to have any equity once the full financed value, including buy-out, is taken into consideration. If there is equity, anything over $5,000 in Alberta must be recovered by the Trustee.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca