Cellphone, Cable & Internet Service Debts in Bankruptcy
When you’re experiencing debt problems, it’s important to consider all the solutions that are available.
Although bankruptcy can often be the most effective way of managing your debts, there are numerous misconceptions surrounding the process and the impact it has.
People tend to assume that they will never be able to get a mortgage if they file for bankruptcy, for example.
Similarly, people may ask, ‘will Rogers cancel my cellphone, cable & internet service if I go bankrupt?’
In addition to this, a considerable number of people assume that everyone will find out if they file for bankruptcy.
In actual fact, many of these misconceptions are wholly inaccurate.
By seeking advice from an independent professional, such as a licensed insolvency trustee, you can access bankruptcy facts and personalised advice.
This will give you the opportunity to weigh up the pros and cons of each debt management solution and determine which one is right for you.
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Can You Keep Your Contracts if You File for Bankruptcy?
While there are 37.5 million people living in Canada, 31.3 million of them are smartphone users.
Now a ubiquitous piece of technology, we rely on smartphones to make calls, send texts, check emails, watch TV and engage with others on social media.
Similarly, cable and internet services are in high demand in Canada.
More than 99% of homes in Canada are connected to the internet, which highlights just what an important amenity it is.
If filing for bankruptcy would put your ability to retain your cellphone, cable and internet service at risk, you’d probably be less likely to opt for this form of debt relief.
Fortunately, you don’t need to worry too much.
Although Rogers hasn’t issued an official statement regarding the issue, it’s highly unlikely that filing for bankruptcy would result in your existing contract being cancelled.
Providing you are up to date with your payments, your cellphone network provider, cable supplier or internet service company will have no reason to assess or cancel your account.
However, filing for bankruptcy means it will be noted on your credit report.
If you attempt to take out a new cellphone contract and the company conducts a credit check, your bankruptcy will be visible, and this may affect their decision to offer you a contract.
Of course, if you have bad credit and don’t take action to resolve it, this could prevent you from being able to obtain any further contracts anyway, regardless of whether you file for bankruptcy or not.
Can You Include Cellphone, Cable & Internet Bills in Your Bankruptcy?
Bankruptcy is designed to include unsecured debts, so this can certainly cover cellphone, cable and internet bills.
If you’ve missed payments and your service has been terminated by the provider, for example, you may owe and outstanding amount plus cancellation fees.
If so, these debts can be incorporated into your bankruptcy.
If your service hasn’t been cancelled but you’re struggling to make the relevant payments, it’s important to discuss this with your licensed insolvency trustee.
You will need to disclose a wide range of financial information to your trustee when you file for bankruptcy, so they can help you to determine how best to approach this issue.
Often, companies will be receptive when you contact them regarding financial problems.
Many cable companies, cellphone networks and internet providers have special customer care teams who can assist you.
If you’re unable to find a solution that’s mutually agreeable to both parties, however, you could cancel the service prior to filing for bankruptcy.
Your creditor(s) will issue you a final bill, which will state what the outstanding amount owed is, along with any termination charges.
You can then include this in your bankruptcy, along with all your other unsecured debts.
How Does Bankruptcy Affect Your Credit File?
Most people assume that filing for bankruptcy ruins your ability to obtain credit.
While you’ll certainly find it difficult to access credit immediately after filing for bankruptcy, you’ll be surprised at how quickly companies will be willing to give you a second chance.
Once your bankruptcy has been discharged, you can begin applying for credit in a bid to repair your file and increase your credit score.
However, individuals are usually advised to apply for just one form of credit in the immediate aftermath of their bankruptcy being discharged.
This will allow you to improve your credit score while still managing your debt effectively.
Over time, you may choose to add another form of credit, such as a second loan or credit card, to show that you’re able to manage multiple lines of credit appropriately.
Remember – immediately following the discharge of a bankruptcy, the credit available to you is likely to come with a relatively high interest rate.
While applying for credit can be a good way to improve your credit rating, it’s important to manage your debts carefully.
This financial behaviour has a direct impact on your credit score and encourages lenders to view you as a safe borrower.
As a result, your bankruptcy shouldn’t prevent you from obtaining credit in the future, providing you manage your finances well.
Should You File For Bankruptcy?
Whether or not you should file for bankruptcy depends on your unique, personal circumstances.
Although bankruptcy can be the most sensible option for many people, that doesn’t necessarily mean that it’s right for you.
Similarly, other debt relief solutions may be appropriate for your friends and family, but bankruptcy may be the one that’s most suited to your situation.
To determine whether bankruptcy could provide a viable solution to your financial problems, talk to a licensed insolvency trustee today.
With their guidance, you can find out more about what bankruptcy entails and what long-term effects it’s likely to have on your finances and your lifestyle.
To talk to someone in confidence now, contact Bankruptcy Canada on (877) 879-4770
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