question about utility bills and bankruptcy

[sofarindebt]

Does anyone know just how much of a deposit they will make us put down for our next house/rental?

Also, we are including our City of _ _ _ utility bill, which is water/sewer, etc. If we move to a different city, will they make you put a deposit on your water bill??? That seems kind of weird, the gas and electric I can understand though.

[SinkingFast]

When we moved last summer, based on our Credit Rating at the time, the electric company had us pay a deposit. The lady said on the phone at the time the deposit was equal to 2 months of service.

Since then, I've read on info sheets included with our various utilities bills, the utilities can ask for a deposit equal to 1/6th of the annual billing for an address.

I don't know if that's a State Law or just what they do locally here. You're best off to call the utility and ask.

You can say something like, "I've never had an acct for service with you in my name before. How much Security Deposit will I have to pay?" Hopefully you'll get the info you want without saying, "I'm filing BK on you. How much Security Deposit am I gonna have to pay in the future?"

[sofarindebt]

what about the water bill?

You don't really "sign up" for a water bill, it just starts coming once you move into a place, so I am wondering if there is a deposit required for this or just gas and electric?

[FilingOnMyOwn]

I had to put down $140 for water.

[CindyLou]

If you move into a complex that has "shared" water bills, then you will just start getting it. If you move into a house or an apartment with individual meters then the process is the same as electric or gas.

[sofarindebt]

thanks everyone!!

We owe close to $600 on our water and almost $500 on our gas, so do you think it is wise to include it? Also, what happens after we file, do they just mark our balance to zero and then bill us for the next month, and only when we MOVE make us put a deposit down???

thanks!!

[CindyLou]

be careful! they cannot disconnect you based on a BK but they CAN required a huge deposit, possibly more than you currently owe. They can disconnect your service for failure to provide the requested deposit. Are these amounts more than two months of your service? I would determine whether the deposit will be more than this amount and then decided. You should find out from them what you will have to make as a deposit before you decide whether to include them.

[poorme]

Once you file - assuming you include the old bills in your matrix, the utility company basically freezes your old account and starts a new account for your post-filing charges. As has been stated, unless you work out an agreement with them on the old charges, they will probably want a very hefty deposit for new service.

I went to a pay phone and called them to ask what their policy was on bankrupt customers who wished to continue service - "4 times your highest monthly bill in the past 12 months" was what one told me for deposit. Unfortunately, with a balance as high as you have they may not want to transfer service for you without a substantial payment against the arrears. But Hey - all you can do is ask - you never know what they might do or could even be in a good mood that day!

[troublmaker_98]

i may have a similiar situation. my attorney listed my electric bill in the bk petition. i have never been late and only avg like $75 per month. when i seen that $75 listed during our review i raised an eyebrow, and he said "i listed it only cause it was on your credit report". i let it go, cause 'he's the attorney and knows best'. after seeing this post i am concerned that this may cause me issues down the road. since it was on the bk petition, does that actually mean DTE will be included in the bk? again i have never ran a balance with them, always paid in full on time.

[CindyLou]

Your open electric account shouldn't be on your credit report. That doesn't sound right?????? Usually only past due/closed/charged off accounts are listed on your credit report. I would clarify this with your attorney. Are you sure that they aren't just on your expense schedule?

[troublmaker_98]

its on my credit bureau for sure, the attorney pulled my equifax from his office.. that account showed 2 month history, "ok" and high balance $75. it was also mentioned during my pre counsel filing class, that the utility companies were now reporting to the bueraus. she explained this is newly introduced and with the utility companies reporting, for me this would be positive and help (my credit scores and having a positive history). i personally wasn't aware utilites reported, but just 'rolled' with her explanation as part of the class. i will double check with my attorney, but my petiton is filed. 341 is june 20th. im hoping this won't be an issue for my next need for an account with DTE.

[Granny]

When we moved last summer, based on our Credit Rating at the time, the electric company had us pay a deposit. The lady said on the phone at the time the deposit was equal to 2 months of service.

Since then, I've read on info sheets included with our various utilities bills, the utilities can ask for a deposit equal to 1/6th of the annual billing for an address.

Just an FYI
1/6 of annual bill = 2 months of service, which is standard here too I think, even for our co-op.

However, if you have a good record with the current company, you can often times present a letter from the old provider to a new provider and they will waive the deposit.