If you find yourself in the position of having to file for bankruptcy, you have a lot of work to do. Contrary to some opinions, people who end up in this situation are notnecessarily bad at managing their money, many end up having to file for bankruptcy because of unforeseen circ*mstances. In America, this unforeseen circ*mstance is frequently aresult of an unanticipated medical condition. Even if you have insurance the bills can easily rack up.
If you find that your only option is to file for bankruptcy, the first thing you should do is get a lawyer who specializes in bankruptcies. The earlier you get a lawyer, thesmoother the process will be and the sooner you can begin to get back on your feet. The first thing that needs to be created for your bankruptcy case is a list of your assets. Itis important to know what you own that is valuable, that you can live without, and that could be used to partially offset what you owe.
A Schedule A/B form is used during the bankruptcy process to help you make a list of your valuables. Valuables are not just things like cars, a painting by a famous artist, orexpensive jewelry. In bankruptcy, an asset is everything you own. So, what is an asset? Your assets are your car, furniture, income, pensions (even if you aren’t collectingyet), annuities, property, lottery winnings, lawsuits you filed, inheritances in probate court and yes, even your cell phone.
Once your assets are listed the court takes a look at them. Some of what happens depends on whether you file chapter 7 or chapter 13 bankruptcy, but the basic premise of yourassets is the same.When you list your cell phone you must put the make and model on Schedule A/B and you can’t just call it a "smartphone". It is important that youput it on the list because if you don’t and they find out later, it will cause you problems, the case could be dismissed, or you may lose your right to file forbankruptcy.
What Happens with the Cell Phone Contract?
When you get a cell phone and the service that goes with it you sign what is called an executory contract. This means that both parties have a part of the contract to fulfill.In this case, you pay them, and they provide you with service. If you stop paying, you are in breach of contract and if they stop providing service they are in breach ofcontract.
These days, a cell phone is almost a necessity. For many people, it is their only phone. When you file for bankruptcy, if you are up to date on your payments or you can bringyour payments up to date, most courts will not have a problem with allowing you to keep your phone.
Contact the lawyers at Bates and Hausen, LLC today to get a free bankruptcy consultation »
