What Happens to Subscription Services in Bankruptcy?
Subscription Services in Bankruptcy
When filing for bankruptcy, it is essential to understand how it will affect your subscription services, such as Netflix, Amazon Prime, Hulu, Ipsy, Birchbox, and HelloFresh.
Subscription services have become increasingly popular. After a single click, you can subscribe to various services without giving them much thought. Adding these services may seem like a great idea. They are generally valuable services for an affordable price.
However, suppose someone is in financial trouble and can no longer afford the monthly payments. In that case, each subscription service could add up quickly. It could become part of what leads a person toward bankruptcy. It is essential to remember that convenience can come with consequences.
In bankruptcy, you can either keep the subscription services or reject the subscriptions. To keep the services, you must continue paying for them on the regular billing cycle. However, if you’d like to cancel the subscription service, it can be listed in your bankruptcy filing. Make sure to add your subscription services when reviewing your bankruptcy petition. This is especially important for services that cannot be canceled freely, such as year-long subscriptions. If you have yet to account for the services, sometimes they can become a financial burden after completing your bankruptcy.
Preparing for Bankruptcy with Subscription Services
When filing for bankruptcy, one of the first steps you should take is to cancel or suspend all subscriptions or memberships that are not essential. Such services (just for example only) include Netflix, Amazon Prime, Hulu, Ipsy, Birchbox, and HelloFresh. These services can be expensive and can add up quickly over time. Canceling them before you file for bankruptcy can help reduce debt and make the process easier. Usually, subscriptions can be canceled by notifying the service you desire to cancel. Remember, when you file for bankruptcy, it may be wise to cut out as many expenses as possible from your budget. Lowering your costs is key to having future financial success after your bankruptcy is completed.
Updating Credit Card Info
Another thing worth considering when filing for bankruptcy is whether or not your subscription services are automatically charged to a credit card or other financial account. If so, updating those accounts with your new payment information once your bankruptcy has been filed is essential. Updating the payment information will ensure that your subscription service will remain in good standing. You may need to do this for any service you desire to keep that was being charged to a monthly credit card.
If you are considering bankruptcy, you can keep or reject subscription services. You may keep some services and terminate others without any penalties. It’s best to consult with a bankruptcy attorney to see what makes the most sense for your unique situation.
Book your free consultation with Bymaster Bankruptcy Law Offices now.
