How Bankruptcy Can Help
Do you have past due utilities and are facing a utilities shut off threat? When you file for bankruptcy, the automatic stay prevents any and all your creditors from collecting on any debt you owe, this includes utility shut offs.
Twenty Days of Required Service
As soon as you file for bankruptcy, utility companies are required to continue providing you services for at least 20 days. 11 USC 366. During the 20 day period, you are required to contact the company and offer them an adequate protection payment. Typically this is a lump sum amount for what the average bill for that utility is. Its the utility companies responsibility to ask for more money if it believes it should get it.
What is a Utility?
Utility isn’t just a public utility like power, water, or cell phone. It can be a private individual, such as your landlord providing you utility services. The Court has found your cable television provider is not a utility.
What happens out of bankruptcy?
Once you’re out of the bankruptcy, a utility company cannot discriminate against you. They can’t charge you a higher rate for the same service it offers to other customers. They cannot require you to make more timely payments or to accept service interruptions during shortages.
Call Us Now
If you feel as though you could benefit from a bankruptcy, then contact us as soon as possible for a free 30 minute consultation.