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Hey, I don't think O2 would credit check again but you wont know until you try.
They won't, as I said above.....
Just worth also considering that if the arrangement you are in is formally recognised as an "insolvency event" then you may also have an obligation to notify O2 (or other providers of credit) before obtaining credit above a certain amount, typically £500.
Not saying that this does apply, or that it would make any difference to your ability to upgrade, just another consideration.