I'll admit I am confused on debtor/creditor law, when I first read it, I guess it makes sense and I learned something here.
A lease isn't like a rental agreement on a lawnmower. You take the lawnmower back to the rental store, you are only responsible for the days you kept it overdue.
A lease in an agreement for a whole set of months.
It's a contract.
Like the lease I pay for my office.
If I decide tommorrow to leave my business, I'm still liable for the remainder of my lease until it expires unless there is an exit clause (which my lease actually does have). Because the landlord is still paying taxes on the property, keeping under repair, he needs to keep the property filled and earning money (or else, why do it?)
I guess car leases don't have exit clauses, another reason you should avoid leasing or the American public should start to try to negotiate them in.
I think a reasonable exit clause for a car lease would be 3-6 months of notification that you tend to exit your car lease with a small penalty ($500-1000), that way, if you are falling behind on payments, you can eventually get out. But, at the same time, if the person just sees a new car they fancy, they can't just change leases on a whim (which is very American and from the leasing co.'s perspective, I woulid want some protection from).
Unfortunately, I think you are stuck with a contractual obligation here.
Never lease.
I'll bold this for the forum:
Rule of Life: You always get screwed on the lease
I was thinking about assuming a car lease a ways back but decided the contracts are just too loaded in favor of the leasing co. even if the price is right.
I do think consumer law should start to address these predatory practices.
I would try to negotiate though. They do have the car back in their posession. Tell them you'll file for bankruptcy and they are the reason. But if they reduce your obligation, you'll settle the matter for $X.00.
Normally, I am not a fan of a person trying to get out of their obligation but at the same time, I do think car leasing (as opposed to real estate leasing) is not regulated enough and constructed way too far in favor of the leasing co.
Have an atty. review your settlement agreement if you get that far.
Offer a reasonable settlement. If you were behind by 4 months. $500/month = $2000 + another $2000 for their time and trouble of dealing with you.
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