When people file for bankruptcy they often believe that they will have to sell most of their property and assets to pay off creditors. However, in most bankruptcy filings, this is not the case. With the help of an experienced bankruptcy lawyer, you will be able to protect many of your assets.

When filing a bankruptcy petition, your lawyer will help you fill out a form called Schedule A/B. This form will list all of your assets that have value. This document will have a section for electronics. Here you would list, with specificity, what type of smart phone you own. It is important to put everything down on this list. If it is discovered later that you left something out, it may cause the case to be dismissed. Hiding assets in bankruptcy is always a bad idea. If you are caught attempting bankruptcy fraud then you can be arrested, convicted and sent to jail. However, many people will leave their cellphone off the list because they do not even think of it as an asset. An experienced bankruptcy lawyer will spot this mistake and make sure this is corrected.

Can a bankruptcy trustee cancel a cellphone contract, making you give up your phone? Yes, however, this does not happen often. A cellphone contract is called an executory contract. Cellphone contracts and other lease agreements are usually classified as executory contracts as it means that if both parties did not hold up their end of the contract, they would be in breach of contract. In this example, if you did not pay your cellphone bill or the contract holder did not provide cellphone service, both sides would be in breach of that contract.

Usually, the bankruptcy trustee will not touch the executory contract as long as the petitioner is up to date on the payments or can become up to date. However, if you are behind on your cellphone payment or the payment to some of lease agreement (such as a leased car), and you want to get out of the contract, then the bankruptcy trustee will cancel the contract, allowing you to not have to pay the past due payments or any future payments on that contract. You and your bankruptcy lawyer will discuss these issues and write on the petition what you wish to do with any and all executory contracts that you may be under.

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