Signed Contract Before BK Filed

[willbfree]

I have a quick question please. I signed a two year contract (unknowingly) for a home security monitoring system about two weeks before we filed our Ch 7. I found this out today because we canceled our landline telephone three weeks ago because we never used it. The home security monitoring company called because the systems are no longer linked and they can not continue to monitor without the landline. The only other option is to have the landline reinstalled or pay a hefty additional equipment fee and additional fees to cover extra costs. I only found out about the two year contract today when I called to cancel our service.

#1 I did not include this company in our bk because I didn't even know we had a contract. Is it too late to include them? We are discharged but not closed or at least I have not been notified of the close.
#2 What would I need to do if I can include them in the bk? Just provide them with our bk case number? Would I need to do anything with the court?

Any advice is much appreciated.

[tinfoilhat]

I think it's too late.

What I would do is just stop paying, from what I've experienced these types of people disappear rather quickly since they were sneaky slipping you with a contract. You might get a few collection letters in the mail, but I'd bet they disappear after a while.

[mom2three09]

Sounds like it may be too late to have them included in your BK.

And if it's Brinks/Broadview expect them to call & send letters almost daily. We had Brinks install a home alarm system last yr and then they switched to Broadview Security and told us we had to add a landline phone in order to continue service. Needless to say we stopped paying & added them into our BK. Oh and they are still sending bills/collection notices even tho we're in the middle of our BK (I called them to inform them of our BK & told them if they continue to try to collect we will sue them).

Since you just got your discharge it may be in your best interest to install the landline since you're probably going to have to pay them their $$ anyway (or risk them putting a negative on your credit reports).

[willbfree]

Thanks everyone. BK atty just called back after checking our case. She found we have been both discharged and closed. We will be paying $100 to reopen and adding them to schedule F? I think was the schedule she said. It's worth it to us to go back and add them to the case. Lesson learned read the fine print on any paper you sign. The bankruptcy does trump the contract because it was signed before we filed. Hope this helps someone else in the same situation.

[LSUTiger32]

I have the same issue, but get this they slipped me a THREE year contract. I am already half way through it so I am just going to grin and bear it but needless to say the salesman got a lot of pieces of my mind. I also went back through my paperwork and convienently noticed that I never got a copy of anything I signed agreeing to a three year contract. It's just cheaper to pay it than to fight it. I am using it but still it's pathetic that they resort to such tactics.

[StartingOver08]

LSUTiger32, you can still add them to your petition since you have not been discharged yet. The cost to add to your case now is $26 plus attorney fees (if your attorney charges you for the amendment).

The reason the OP has to pay a little more is because the case is already closed.

[willbfree]

LSUTiger32 agreed. A two year contract was never mentioned and the paper I signed was presented as inspecting and/or work done upgrading our security equipment plus receipt for first three months payment. Our atty says this is quite common for this industry and why I updated this thread. Bk trumps any security agreement contracts signed pre bk.

Good luck to all on your bk. Life has returned to normal post bk and I wish all here a smooth and painless bk process.

[OhioFiler]

Most security companies require a 3 year (California only allows a 2 year) agreement. They install their system for not much money, often as little as $99 so they don't make any money without holding you to a commitment period.

The contract the homeowner signs clearly indicates the length of the contract and assigning blame to the salesperson for not reading the terms before signing is not an excuse. The ones who are most difficult are Guardian and Brinks/Broadview. They will renew your contract for another 3 years if you fail to cancel within 30 days prior to your initial term expiring. ADT goes month to month after the initial term. Those are the 3 biggest providers, other security firms may be quite different.

The balance due on the contract is usually not too much and not worth the company's time or effort to collect. Most will cancel your service and not allow you back as a customer before you pay your old balance.

ADT is the only major provider who does not do a credit check before you contract with them. If you buy from an ADT Authorized Dealer, they do in fact do a credit check. The reason is they sell the monitoring contract to ADT and ADT won't buy from the dealer if the customer has weak credit.

[mom2three09]

I have the same issue, but get this they slipped me a THREE year contract. I am already half way through it so I am just going to grin and bear it but needless to say the salesman got a lot of pieces of my mind. I also went back through my paperwork and convienently noticed that I never got a copy of anything I signed agreeing to a three year contract. It's just cheaper to pay it than to fight it. I am using it but still it's pathetic that they resort to such tactics.

Same thing happened with us. When they installed the system we were told we would have a 1 yr contract with them. Called in to cancel the auto payments and was told we still had 18 mos left. No where on our paperwork did it say we had a contract with them for 3 yrs.

Was SO nice to be able to add them to our list of unsecured creditors

[OhioFiler]

Same thing happened with us. When they installed the system we were told we would have a 1 yr contract with them. Called in to cancel the auto payments and was told we still had 18 mos left. No where on our paperwork did it say we had a contract with them for 3 yrs.

Was SO nice to be able to add them to our list of unsecured creditors

If that is the case how can they claim you have 18 months left?