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    wireless phone contracts

    I have a question regarding cell phone contracts. I started a 2 year contracted with at&t about 11 months ago. I filed for bankruptcy (chap 7) in july and just received a discharge order today(11-04-2008). My question is this: if I cancel my cell phone now because of a tight budget can they still stick me with the $175 early cancellation fee? Can I just say hey it's included in bankruptcy? It's a no asset bankruptcy by the way.....Thanks!
    341 meeting 08/18/08 :aggress:
    I'm a 60day'er!!!!:clapping::yahoo:
    last day of objections 10/17/08 :D
    discharged 11/04/08 !!!!!:yahoo:

    #2
    Was it included in the bankruptcy? Just telling them it was included propbably wouldnt be the end of it. They would ask for proof of discharge,then check to see if you included them in that bankruptcy.

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      #3
      I just bought a pre-pay cell phone and it's the best thing I've done! No monthly bills

      Comment


        #4
        Originally posted by debtor36K View Post
        I have a question regarding cell phone contracts. I started a 2 year contracted with at&t about 11 months ago. I filed for bankruptcy (chap 7) in july and just received a discharge order today(11-04-2008). My question is this: if I cancel my cell phone now because of a tight budget can they still stick me with the $175 early cancellation fee? Can I just say hey it's included in bankruptcy? It's a no asset bankruptcy by the way.....Thanks!
        No - because you did not include it in your bankruptcy. If you cancel that 2 year contract now they will stick you with the arly termination fee.

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          #5
          Periodically there are 'outs' that you can use to get out of a contract. Do a search and you might find a usable one. They are generally related to overall contract changes. Also, if you tell them you are having financial problems they might negotiate a settlement or let you make payments on the ETF. In any case, not knowing what your monthly fee is, you might be ahead of the game just letting it go??

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            #6
            Ok, thanks guys. No, they weren't included in the bankruptcy but I thought I read somewhere that it didn't matter if creditors were included or not in a NO ASSET CHAP 7 case. My monthly payment is around $120 for 2 phones. If I cancel them the fee for both is about $350! I have about a year left on the contract so for a year the cost is about $1400...... Hmmmm....$350 to cancel or $1400 to keep??
            341 meeting 08/18/08 :aggress:
            I'm a 60day'er!!!!:clapping::yahoo:
            last day of objections 10/17/08 :D
            discharged 11/04/08 !!!!!:yahoo:

            Comment


              #7
              I say it depends. if you listed them as a creditor, the contract is void if the Trustee doesn't assume or reject the contract within 60 days of the petition! (11 USC 365(d)).

              Note, I'm no Chapter 7 expert, but I'm dealing with a contract now, which I'm rejecting outright. However, the Code provides for automatic rejection if contracts and leases aren't assumed.
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

              Comment


                #8
                I would call and ask them if there are alternatives.

                I had to cancel my son's plan about a year ago. He was only a few months into a 2 year plan.

                When I called to cancel, Unicel advised me there would be a termination fee. I told them I was aware of it. The rep then informed me that if I could find someone to assume the contract, they could go to a Unicel kiosk with me, and sign a financial responsibility form essentially transfering the balance of the contract to them.

                That's what I did, found someone to take over the plan, they signed the form - I handed them the phone and Unicel changed the number (and customer info) at no charge. Saving me the early termination fee, and allowing me to walk away from the contract.

                If you know someone who might be interested in taking it over, and the company will allow it, it's worth checking into..............

                Good luck!
                K
                You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing

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                  #9
                  I forgot about having someone assume the contract - of course bear in mind that they would mostly likely have to 'pass' their criteria and probably would involve a credit check.

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                    #10
                    Earlier this year there was a congressional hearing about the early termination fees. Didn't go anywhere because the cell phone companies *****ed and moaned, and the majority in the committee - Republicans - just shelved the problem/issue. MIght change once January 20 rolls around.

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                      #11
                      Or you could just cancel it and let them come after the 350 bucks. Cingular tried to stick me for about 400 bucks and I welcomed collections on that account. Just sent a C&D letter and it pretty much disappeared. It's doubful they will take you to court or garnish your wages or seize your checking account for $350. Not saying they won't, but...meh

                      On a side note, when I bought my last car I mentioned that I had this collections on my credit report and they financing guy laughed and said it was so small it wasn't an issue, then gave me 0% APR for 70 months on our car.

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