Mobile upgrade during bankrupt year

worriedmamma

Hi all

I hope everyone's doing well.

I am in my bankrupt year and my mobile phone contract is due to be renewed. My old phone broke months ago and need a new one as the one I borrowed is broken. Husband was going to put this in his name (he pays it anyway!) on renewal. He called and arranged it all for me but turns out they've done a deal with it still in my name. We told them I am bankrupt and they were happy to renew.

Just checking this is okay? On my obligations as bankrupt it says do not obtain more than £500 credit without telling the provider I am bankrupt, which I have. (as the contract over 2 years is more than this!) However I feel like this looks bad on my part, even though my husband pays the bill.

Any thoughts/advice please?

Thanks x

National_Debtline

Hi there


All that matters is that you comply with your bankruptcy obligations - which you have as you clearly state. After that, if the mobile provider is happy to offer the contract, that is their prerogative.


Dennis
@natdebtline

[Deleted User]

As above you (or your husband) informed the provider as the value was over £500. That's it, you've complied.

If a bank gave you a £20k loan, it might seem ridiculous and is well over the £500, but you've still complied.

NotEvanAPot

Thirded, you have complied by informing the creditor.

Simply remember that whilst a handset and call package through a provider is a credit agreement for goods, the cost of the handset is often recovered in a few months by the supplier, at which point their "risk" is to supply contact via connection. No payment equals disconnection and upheaval on the users behalf. This is why they happily renew or even provide new contracts to undischarged or newly discharged BR.

worriedmamma

Oh wow, thanks guys. My shiny new phone is here already and the contract is actually less per month now. Just felt like I shouldn't be 'renewing' something that's basically giving me credit. But yes you're right, we told them, they said it's fine. We've always paid the bill. Phew!

A4445

I have an O2 contract. I've had the account well before I was make bankrupt, I upgraded several times through the 7 years when my BRU was in place I made sure the phone value was less than £500. It seems O2 didn't have any issue with my bankruptcy, my payments are always on time.