A recent client asked me if she could terminate her cell phone contract through the bankruptcy and not be subject the termination fee of her provider.   The answer is YES a debtor can terminate their current cell phone contract by listing the cell phone provider on their bankruptcy petition and “rejecting their contract.”  I would put cell phone providers debts into the following three categories:


Old Cell Phone Contract Debt

If at one time you had a contract (and it has expired) and you owed an amount then by listing the old cell phone provider on your schedules you will easily be able to eliminate or discharge the debt through bankruptcy.


Current Cell Phone Contract Debt and Canceling

If you have a current cell phone contract debt and are planning on canceling the debt then you should put the owed debt amount as well as the contract on the bankruptcy petition and mark the contact as “rejected.”


Current Cell Phone Contract and Continuing to Pay

If you have a current cell phone plan and are continuing to pay then you don’t need to list the cell phone contract or the debt on the bankruptcy petition.


If you are thinking of filing for bankruptcy in South Florida and would like to schedule an appointment with a local bankruptcy attorney then please contact Ofer Shmucher at Shmucher Law, PL by calling 305.741.5553 or 954.309.5559.  We offer free consultations in our Miami office as well as any of our satellite offices (by appointment) including Boca Raton, Fort Lauderdale, Plantation, and Sunrise Florida.