What Happens To Your Cell Phone When You File Bankruptcy?
At the end of every initial consultation, I hand my clients what I call their “homework”. It is a 15-page questionnaire that asks them to list every debt, bill, asset, piece of property, transfer of property, they own. When they come back for their next appointment, I go over it with them and urge them to include every possible thing. I do this for two reasons. First, I can’t properly prepare their bankruptcy petition without knowing everything, and second, if they don’t include something, the bankruptcy trustee might find out at the meeting of creditors. If something doesn’t seem quite right, and she investigates further, the client risks having his case dismissed.
One of the things that clients usually leave off my questionnaire is their cell phone contract, because they want to keep their cell phone. A cell phone contract is what is known as an “executory contract”. Other common executory contracts are leases for rental property. Although you have to include all executory contracts on your bankruptcy petition, it doesn’t mean that the contract will be cancelled. Your attorney will clarify what you want to do on the bankruptcy petition. You can “assume” or continue the contract as long as you are up to date on your payments, or if you bring the contract current.
However, if you do want to cancel your cell phone contract, bankruptcy allows you to do so, and relieves you from any early termination fees. Again, your bankruptcy attorney will clarify what you want to indicate on your petition if you want to cancel your contract. This may be your best option if you are behind on your payments, or if you have gotten into an expensive contract. It’s also a good idea if you are trying to get your monthly budget into line with your income.
Talk To A Colorado Bankruptcy Lawyer About What Happens To Your Cell Phone When You File Bankruptcy
There are a lot of misconceptions about bankruptcy floating around on the Internet. Or maybe your uncle knows someone who filed bankruptcy. The best way to get your questions answered is to talk to an experienced bankruptcy lawyer. If you are considering bankruptcy, we hope you’ll come in for a free, no-obligation consultation with an attorney. You can make an appointment by using our online scheduling system or by calling 303.331.3403 to set up a time that is convenient for you.