How to Remove Someone From an Automobile Lease

by Brooke Pierce

A joint automobile lease may become a problem when the relationship between the two owners changes leading them to part. Normally, this poses a challenge to lenders, as they require payment from both parties. There are different circumstances that may lead you to remove an individual from a joint lease on an automobile like divorce, death, bankruptcy or even incapacitation. You cannot remove someone from the lease without his approval, but by following the right steps, you can do it.

Call the Lender

Get the lease agreement and go through it to understand fully the restrictions it has on removing your partner. Call the lender and inquire whether you can remove the other person. Depending on the reason for removal, the lender will advise you accordingly. The lender will inform you to gather some documents.

Gather Required Paperwork

This depends on your reason for removing the other person. A death certificate is necessitated in the case of the death of the individual. In the case of divorce, the court’s decision does not affect the joint lease. The couple is still be jointly liable for payment. The legal settlement paperwork will be required, and your partner has to write a statement accepting her removal. For bankruptcy of the party, you will be required to provide legal documents that prove your joint lease partner is bankrupt. In the case of incapacitation, you will need to provide medical documentation proving their state of incapacitation.

Tip

  • To be declared bankrupt, you must file a voluntary petition form to the court. Having an attorney to guide you is important.

Make Changes to the Lease Agreement

Give the lender documents that verify your income and your current obligations, for example, your paystub. This enables the lender to verify that you can begin paying the lease on your own. Change the lease agreement to read your name only. There are fees that accompany the amendment of the lease that your lender will tell you about

Reregister Your Car.

Bring the new registration papers that the lender will issue to you, indicating you as the new owner, to a local motor vehicles agency. Also bring the previous statement indicating that had joint ownership. Apply for a new registration certificate. There are fees that you will need to pay at the office.

Tip

  • If you find that you cannot be able to carry the car lease on your own, you can either go back to your lender or identify someone to shoulder your payments on your behalf. You can go back to your lender to discuss the alternative of trading in your leased car for a cheaper one. Note that the value will have depreciated and most lenders will not agree to this. The best option is identifying an individual who will help with payments. This is called a lease transfer. A majority of companies do accept this. Advertise your car in websites like Craigslist and eBay Motors.

Tip

  • The lender can refuse your request to remove the other party, and you will remain responsible for the payment of the lease.

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About the Author

Based in Amsterdam, Brooke Pierce has been writing automotive-related articles since 2012. She holds a Bachelor of Science in automotive engineering technology from Ferris State University, Big Rapids, MI.