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NJ Bankruptcy Lawyer Discusses Cell Phone Usage In Bankruptcy

Chapter 7

The information provided below may not apply to your telephone service provider, as the terms vary with each provider.

If the debtor owes a debt that is due to a cell phone provider, the debt will be eliminated in a chapter 7.  After eliminating the debt that is due prior to the bankruptcy filing,  the debtor  may wish to continue the same service by establishing another account.  If the debtor wishes to continue the service with the same provider, the provider may require a security deposit.  The security deposit requirement, may depend on the debtor’s credit history, in addition to other factors.

A cell phone is an asset and should be listed on schedule B of the bankruptcy petition, as such.

Chapter 13

Typically, cell phone providers handle the debtor’s account, the same in a chapter 7 as a chapter 13.  In a chapter 13 any debt accrued after the bankruptcy filing is not eliminated in bankruptcy and must be paid.  In the event that the debtor converts to a chapter 7, any debt incurred after the chapter 13 filing, through the date of conversion, may be eliminated in the chapter 7.

The New Jersey bankruptcy attorney, Robert Manchel, may be reached at 1 (866) 503-5655 , to discuss any debt issues.




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