What happens if someone is leasing a car and they die?

[Anonymous]

What happens if someone is leasing a car and they die but they don't have any assets at all ( ex someone in their early 20's) and there is no cosigner?

Also the person has no dependents or kids.
Will bankruptcy have to be filed for a dead person?
Is that even possible. Just curious where does the debt go to.
Does it go to the family?
Will the leasing company end up responsible for the debt?

[Goforit1010]

The family of the deceased will need to return the vehicle to the lessor. After that the debt can be paid/collected from the estate, but... funeral expenses come first to be paid and everyone else needs to get in line after that.

When the money from the estate runs dry, the rest of the debt collectors will have to eat the debt and write it off. They either claim it as a loss, or they sell that debt to some unsuspecting debt collectors (knowing it will never be collectable).

[OlderAndWiser]

Death ends the obligations of contract unless the contract specifically binds the estate of the deceased signer.

[OddBeMe]

Well leasing is renting the car. Buying with a loan is what’s usual. And the car is the collateral. So they’d just take it.

But when someone dies with a debt, it’s usually a wash for the debtors. Immediate family like spouse usually keeps the debt, but beyond immediate household, debtors are screwed. Yet still make loads of money. So don’t worry about them.

[20yearsolder]

As long as they are the only person on the lease, the car goes back to the company that he leased it from

[20yearsolder]

The financers can't sue a dead man, they have to eat the loss