Bankruptcy

[Anonymous]

I have just found out I am bankrupt. What are the implications for my 24month contract with o2?

[Anonymous]

You can call customer services and ask to speak to Payment Management to discuss the best way forward.

Best of luck!

[Anonymous]

Can you still afford the payments? if so why would you need to call them obviously if you cant then you need to

[sheepdog · Accepted solution]

Hold on, just re-read this - you say you've just found out or do you actually mean you've got legal documents stating your financial position or just your current finances? 

Technically, if its not part of the proceedings yet then I believe it should be declared as an outgoing expense. From there, it is difficult to speculate any response as bankrupty is a subject relative to your circumstance. o2 may be informed from the legal parties and added to the list. That would almost automatically cause the contract to be terminated and from the posters on this forum (who haven't paid a bill or two) will send out the debt collectors.

The usual answer from the forum is to try and sell the phone and put the proceeds towards the remainder of the contract i.e. buy your way out rather than having more problems heading your way by not paying because you are bankrupt (in my honest opinion). The collectors are rather persistant and I don't think you want that. You could then go to PAYG with the same number if you manage to pay off the remainder. However, that could prove expensive if you're more or less in the first 12 months of the contract.

Though the best advice would be to ring CS and ask about the process - I believe there is a group there who specialise in this type of situation though the name escapes me at the moment. Oh and avoid Live chat because they won't know how to deal with the scenario and may give far worse advice. 

[Anonymous]

According to the information booklet from the official receiver I have to have their approval to continue any credit agreements. I am not allowed to enter any agreement over £250.00. Creditors must apply to the official receiver for payment as it is a criminal offence to withold any existing assets or credit agreements. My assets, including bank account, car, savings etc have to be declared and surrendered to the receiver who decides who gets paid and in what order. I can't see O2 wearing that, as my bank account is frozen so no DD's can be paid until approved by the official receiver.  

[Anonymous]

O2 wont have any choice they will cut you off but I would have thought your contract would be involved in your bankruptcy proceedings

[Anonymous]

Yes, we just got back and on checking the post I have found that I am in bankruptcy. The papers are issued from the county court where the appcation was made.

[sheepdog]

If you've already declared your credit agreements then there is little more to do from your end. The process will inform o2 and as above, will result in the sim card being terminated. 

BTW, did the last billed payment get taken out of the bank account successfully? If so then you have paid a month in advance so you have from that date to the next billing date before o2 will react. But you'd still need to tell the official receiver of this. 

[Anonymous]

This is the first I have heard of the proceedings. I just got mail forwarded from my previous address. I applied for the phone and contract in February, the bankruptcy was granted in march. I will, of course, appeal to the receivers office as I was not given the opportunity to clear the debt, albeit due to not receiving the notification of any proceedings due to our move. Simply paying the debt now will not change my status as a bankrupt.

[Anonymous]

Yes, the last DD was paid. I haven't declared anything to the receiver as I only got the forwarded mail when we got back thi morning. Will I have to return the phone, as it was free?