Impact of Bankruptcy on contractual obligations

April 19th, 2008 by Questions

Does filing bankruptcy automatically terminate all your contractual obligations or just those related to debt? Can I use bankruptcy to get out of a service contract that doesn`t have a cash value?


One Response to “Impact of Bankruptcy on contractual obligations”

, A licensed trustee said:

It does not automatically terminate your contractual arrangements, but it can be used by either the bankrupt or the service provider to “break a contract”. Some common examples are cell phone contracts and gym memberships, but under current legislation, bankrutpcy may be used to break most contracts.

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