Will Rogers Cancel My Cellphone, Cable & Internet Service If I Declare Bankruptcy?

Life three decades ago was drastically different, especially in terms of technology. Cellphones were not in existence, and today, they have become inseparable from our daily lives. It’s almost as if every Canadian over the age of ten owns a smartphone. The question arises, “Will Rogers Cancel My Cellphone, Cable & Internet Service If I Go Bankrupt?”. Let’s delve into it.

Understanding Your Debt Status

The answer to this question isn’t as straightforward due to the multiple factors involved. The response doesn’t rest solely on the legal interpretation of how debts are handled in bankruptcy. Rather, it depends on the policy of individual companies.

 

If you are currently not behind on your payments and wish to maintain your existing service after filing for bankruptcy, you can retain your service.

 

This hasn’t always been the situation. In the past, Rogers had a policy of terminating services if a customer filed for bankruptcy. However, company policies can evolve over time.

Creditor, Debtor, and Service Providers: A Complex Relationship

A creditor is an entity or a person to whom you owe money. If you have a Rogers bill due on the 15th of the month and you declare bankruptcy on the 1st, you are indebted for the service that you will be utilizing until the 15th. This holds true for other bills such as utilities, gas, and even your monthly rent.

In the past, Rogers would terminate your account upon bankruptcy filing, and you would need to apply for a new one. It was then at Rogers’ discretion whether to reactivate your service or not. Given your bankruptcy status, they viewed you as a higher-risk customer and might have demanded a security deposit to resume service.

The Change in Policy: A Win-Win Situation

Rogers, realizing that terminating accounts was counterproductive, changed their policy. If they cancelled your account, you would likely switch to another service provider like Bell or TELUS, and Rogers would lose you as a customer permanently.

Therefore, if you are not in arrears, Rogers does not consider themselves a creditor in your bankruptcy. They prefer not to be informed of your bankruptcy. If your payments are current, they generally avoid filing a proof of claim with the bankruptcy trustee. This approach makes good business sense. You are not behind on payments, you wish to continue your service, and Rogers wants to keep you as a customer. Everyone benefits.

Can Rogers Be Included in a Bankruptcy or Consumer Proposal?

Yes, it can. If your service has already been cancelled, or if you wish to cancel your service, Rogers can be included in your bankruptcy or consumer proposal, just like any other creditor. Based on our data, about 97% of instances where Rogers appears as a creditor in a bankruptcy, it’s because the service has already been terminated.

You might have an expensive cable package which you can no longer afford. If you declare bankruptcy, you can cancel the service, and all cancellation charges are included in the bankruptcy.

 

NOTE: If you plan to cancel your service, do so before you file for bankruptcy. They will send you a final bill, which will include any cancellation charges. This bill becomes a debt from before you filed, so if you want to cancel your service, plan to do it before you go bankrupt so that all cancellation and other charges are included in your bankruptcy. It’s important to ensure repayment of this debt to avoid collection on a Rogers bill.

 

Downgrading Your Service: Is it Possible?

You might be on an expensive contract and want to downgrade your service when you declare bankruptcy. You can reach out to Rogers and request special treatment. They have a dedicated customer care group that will work with you. Depending on your situation, they might be able to transition you to a less expensive plan. While there are no guarantees, your chances of successfully negotiating a revised arrangement with Rogers are increased if you contact them immediately upon filing bankruptcy and explain your situation.

Final Words of Wisdom

At Bankruptcy Canada, we view consumer proposals and bankruptcy filings as a fresh start. The first step is to get out of debt. However, your financial troubles might be partly due to high expenses, so reducing your cable, cellphone, or internet service might be a smart move for your future. Now is the time to create a personal budget and determine if cost cutting is in order.

If you decide to maintain your existing service, make sure your payments are up-to-date before you file, if possible. This is sound advice for all your monthly expenses like rent, utilities, and insurance. If you are up-to-date, it is likely that you can keep your service.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

Discuss options to get out of debt with a trained & licensed debt relief professional.