Updated: Jun 17
We all rely on electricity each day with warm water, lights, and working kitchen appliances. But if you are behind on your utility bill, the threat of getting your power shut off is ongoing. So will filing for bankruptcy keep your lights on? Here’s what we know.
Filing for Bankruptcy and Utilities
It may feel like a last-ditch effort to file for bankruptcy in order to keep electricity in your home. But the truth is, if you’re behind on utilities, you are probably behind on repaying all of your debts. It can feel overwhelming. Take a look:
1. Once you file for bankruptcy, your power company cannot shut off your utilities. You must formally notify your power company of the filing. Once they receive notice, they will be obligated to continue to let you use the power as you work through your bankruptcy.
2. In some cases, you must pay a deposit to continue the service. While the energy company does not have to receive full payment to continue services, they do require a deposit to show your intention to work things out.
3. It depends on what kind of bankruptcy filing if your energy debts will be cleared. In Chapter 7 bankruptcy, your utility debts are forgiven. On the contrary, Chapter 13 bankruptcy includes a repayment plan or negotiation of a lower price to pay to clear the debt.
Contact a Lawyer for Help
If you are underwater with your utility bills on top of every other debt in your life, it may be time to file for bankruptcy and get a fresh start. Do not hesitate to contact a competent lawyer to navigate your rights regarding utilities and bankruptcy. When you have a professional by your side, the energy company cannot take advantage of you.
Our team at Miles & Hatcher, LLP, is ready to answer all of your questions regarding bankruptcy. Is Chapter 7 or Chapter 13 the better bankruptcy option for you? How can you protect your assets through the bankruptcy process? Will you lose your home during bankruptcy? Find out the answers to these and more when you call our team at (909) 481-4080.