If you’re facing a discontinuation of one or multiple utilities, you may be able to prevent their shut off by filing for Chapter 7 bankruptcy. Chapter 7 bankruptcy can help to keep your gas, electricity, water or your telephone running in some circumstances. However, you may need to pay a security deposit to get your utilities turned back on.
BANKRUPTCY PROHIBITS UTILITY CANCELATION
If you file for Chapter 7 bankruptcy and you owe back payments on your utilities, utility companies cannot discontinue your service or alter it in any way.
While it is true that your utilities will stay on and be protected against shut off with bankruptcy filing, it isn’t permanent. There is a time limit on how long it lasts. Your utility company may require a security deposit within 20 days of your bankruptcy filing.
You should act on your situation before the 20 day limit passes. It’s possible to still face a utility shutdown if you don’t prepare and present the assurance method to your utility provider. It is unclear whether utility companies can shut off services without legal permission after the time limit is up. Regardless, you should make sure you handle your situation within the 20 day limit.
Also, remember that there are certain instances where some of your utilities cannot be shut off. For instance, in some northern states your heat-related utilities can’t be shut off during the winter. Some states safeguard households in which the elderly, disabled or infant reside. If you’re unsure you are able to receive this sort of stay against utility shut off feel free to give us a call so we can help.
If you’re filing for bankruptcy to keep your utilities from being shut off, then it may behoove you to file under emergency bankruptcy circumstances. In the same way the automatic stay goes into effect immediately to stop wage garnishments and levies, filing Chapter 7 bankruptcy can also keep your utilities working as soon as you file. An attorney can provide the proper information to your utility company.
If you’re backed up with your utility payments and you’re facing harsh retaliation from utilities companies, bankruptcy can be a viable option to rectify the situation. Give us a call at -#- so we can help you with the process and make sure you don’t spend a minute in cold and darkness. The consultation is free, but the information gained can help you in the long run. Do not hesitate, give us a call today.