I filed last year and listed Verizon as a creditor due to my device contract. Eventually they applied a credit to my account under bankruptcy - device payment as previously noted. You can tell when it happens because your device page will show no payments or balance remaining.
Once the credit is applied, the phone is yours outright. I didn't expect that to happen but it was a pleasant surprise. My account recently updated with a date that the device is eligible for upgrade.
