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Will You Lose Your Cell Phone in a Bankruptcy?

One common question our clients ask us is whether they can keep their cell phones during and after bankruptcy. Most of us depend on our cell phones for many of our daily activities, including work. Without our cell phones, many of us would not be able to function in our daily lives. The good news is that most people can keep their cell phones while going through bankruptcy. Even though all of the property that you own, including your cell phone, must be listed within your bankruptcy schedules, there are legal exemptions you can take advantage of to keep your cell phone with you.

You Can Use an Exemption for Your Cell Phone

When you file for bankruptcy, you will need to list your cell phone as an asset. You also need to disclose your contract with your cell phone provider. Your cell phone payment is a monthly expense that you will need to include. If you have an executory contract or lease agreement as part of your cell phone plan, you must list it as an expense.

Most judges consider cell phones an ordinary expense because almost everyone has a cell phone and uses it daily. Many people do not have landline phones anymore, so bankruptcy judges do not consider cell phones to be luxury items. This is beneficial for debtors because it allows them to keep their cell phones without giving them up during the bankruptcy process.

Bankruptcy applicants have the right to exempt a certain amount of assets. You can use your exemption for your electronics, such as your cell phone and laptop. You also can use a wild-card exemption. If you use an exemption for your cell phone or other personal electronic devices, make sure you research your phone’s fair market value now. Do not list the value of your phone when you first bought it.

Most Trustees Will Not Sell the Debtor’s Cell Phone

In a Chapter 7 bankruptcy, the bankruptcy trustee has the right to sell or liquidate your assets. The trustee will use the cash from the sale to pay off your creditors. In most cases, trustees are not interested in selling the debtor’s cell phone. For one thing, cell phones typically lose significant value once they are purchased. New cell phones can cost over $1,000. Used cell phones are usually worth significantly less, making cell phones not worth the trustee’s time to sell. In a Chapter 13 Bankruptcy, none of the debtor’s assets are sold. Instead, the trustee works with the debtor to create a three-to-five-year repayment plan. 

Contact a Los Angeles Bankruptcy Lawyer

 Many people who are considering filing for bankruptcy have fears about what will happen to them, and losing a cell phone is one. If you are considering filing for bankruptcy, the best thing you can do is speak with an experienced bankruptcy lawyer who will walk you through the process. Contact the Los Angeles bankruptcy attorneys at  Bankruptcy Law Center today to schedule your initial consultation.

See What Our Clients Have To Say

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Roger C.

I reached out to BLC to help assist with a chapter 7 business bankruptcy and they provided excellent guidance, advice, and support through the entire process. In my case an adversarial action was filed by one of the creditors and attorney Ahren Tiller and his staff provided sound ...arguments which prevailed. Couldn’t have found a more experienced and supportive team to represent me in a tricky situation. I would highly recommend them to anyone making the difficult but sometime necessary decision to find financial relief. Read more
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Justin R.

Like many others before and during the pandemic, life happenings caused me to be in a financial situation to warrant bankruptcy. The BLC was super professional all the way through the entire process. Right after I paid for my Bankruptcy, I got sick and had to have surgery and recovery. Then we ...were in full Pandemic mode. They were gracious to delay my filing until I was recovered and ready to file. I could not ask for more. The process was over all quick and painless for a simple Bankruptcy like mine. I feel a weight has been lifted and I can rebuild. Thank you for all your arduous work and patience, Gabriel, Ahren, and their teams are knowledgeable and efficient. Read more
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Katey Huntley

Responsive, friendly, kind, extremely easy to work with! So knowledgeable and made this entire process painless. Very grateful!

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Lynn Molina

Gabriel Hanna, Esq and the staff at BLC helped me in a very difficult time. I appreciate all the help and care they gave my case.

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Linda Cramer

I can’t say enough of how much this bankruptcy law firm helped me with my financial situation. They were all so helpful, efficient and made the difficult time and process as quick and easy as possible. I would recommend them to anyone I know and am glad to give my public recommendation as well. T...hey truly deserve a five star plus rating. Read more
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Andrea N.

I am very happy with my experience with BLC. Bankruptcy is not something anyone wants to go through, however everyone at BLC made my experience pleasant and easy. The process was explained thoroughly and I had an easy time reaching out and connecting with my attorney. Anika Renaud-Kim was my attorney ...and she was nothing short of amazing! She was very patient and generous with her time. Ms. Renaud-Kim definitely made me feel at ease and comfortable through the entire process. Read more
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Lidia Paramore

they did a great job for me, helped me anytime I needed something, my Lawyer Gabriel Hanna is the best, gave lots of confidence all the time..thanks BLC I will.always recommend you, I’m very grateful for your service!!!

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Rachael C.

When searching for information I had called a few different firms and received consults. BLC was the only one who didn’t shy away and provided answers and information during the consult. Once I agreed to move forward, they were supportive, informative, and eased my anxiety through the whole process.... I can’t recommend them enough. Read more
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Emily Martinez

AmazingI had many questions and uncertainties and the carefully explained it all and made it easy to understand. They facilitated a fast and easy process making this scary difficult thing simple

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Legal Disclaimer: The Bankruptcy Law Center is a California Licensed law firm with attorneys licensed in the state of CA, NY. Attorney Ahren Tiller is responsible for this advertisement. Bankruptcy Law Center’s principal office is located at 1230 Columbia st. Suite 850 San Diego, CA 92101. Prior results listed on this site do not depict or in any way infer a prediction or outcome.We are a debt relief agency proudly providing options to people with financial problems. View our Privacy Policy

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