CitizensOne loan iPhone upgrade program/other questions

[RockSteady]

I needed a new phone this past January. The old one was acting up, I was on the upgrade Apple program. Financial problems arose and I’ll need to file Ch7 in a few months. I’m assuming CitizensOne will turn off the phone once I file. I have T-Mobile no contract service, post paid, and am current, need to keep services. I looked at contract and could find no mention of a BK issue. I can’t lose the phone, I need it for work. I am current on
the bill. I switched the payment source from a CC to my checking account. I think balance of the phone is about $1400. I know, I have made many mistakes in my life.

I may need to wait until May 2020 to file. When do I stop paying all my CC bills? I had a huge job loss, illness, and new job I’m working in pays very little compared to previous job. I can’t keep on w/d from my IRA to pay bills. I’m over age 60.

[sophieanne]

Hi and welcome. You should stop paying your cc bills now, if you can't afford them. Your phone will ring off the hook from collectors, but just ignore them till you file. Good luck.

[RockSteady]

I’m pretty worried about my iPhone now. I don’t want them to turn it off.

[bcohen]

CitizensOne Bank cannot "turn off" your iPhone if you default on the loan. That would only be a risk if you had financed or leased the phone directly with your carrier (in this case, T-Mobile). That being said, what on Earth do you need a $1400 iPhone for that a $200 LG or Samsung would not do? To put it in perspective how ridiculous it is to pay $1400 for a cellphone, I have purchased used cars for $2000, which ran well and lasted for several years.

[RockSteady]

Part of my problem is that I have severe anxiety. That is all I can say now without loosing what sanity I have left.
Price included AppleCare+ and taxes.
They can’t report it stolen? Cancel the IEMI number, whatever it’s called? I’ve used Apple products all my life. My laptop broke and all I have is phone and iPad. I use them both heavily.

[justbroke]

They can't report it stolen... it's not their phone. They can't cancel the IMEI number, as it's not their phone.

If you look at your CitizenOne's installment agreement it likely doesn't even have a "security" section where you pledge the phone as property. At least every single iPhone I purchased through AT&T or Verizon never had such a clause. That means that you own the phone outright and only have an "unsecured" loan with the lender.

For example, when I filed my Chapter 13, I had 2 iPhones and one iPad on installment. AT&T nacelle the installments and started a new account for me. They never asked for or did anything to interfere with the phone service or the phones.

[RockSteady]

They can't report it stolen... it's not their phone. They can't cancel the IMEI number, as it's not their phone.

If you look at your CitizenOne's installment agreement it likely doesn't even have a "security" section where you pledge the phone as property. At least every single iPhone I purchased through AT&T or Verizon never had such a clause. That means that you own the phone outright and only have an "unsecured" loan with the lender.

For example, when I filed my Chapter 13, I had 2 iPhones and one iPad on installment. AT&T nacelle the installments and started a new account for me. They never asked for or did anything to interfere with the phone service or the phones.

Thanks justbroke. I feel a lot better now.