Utilities bills - not current

[jessegirl]

Flamingo - No I have not, but I will be seeing him in a week, so i will ask then.

Angelinacat - Wow, what a nice gift that was!

Also, thanks everyone else for the info.

[Cali]

justbroke - I've never had any service every turned off.

If you don't pay a deposit, you won't have any service to turn off because it won't be on to start with.

[justbroke]

justbroke - I've never had any service every turned off.

If you don't pay a deposit, you won't have any service to turn off because it won't be on to start with.

??? don't understand that last part.

You can certainly have utility services without having paid a deposit. I know, because all of my utilities, prior to Bankruptcy, didn't require a deposit as my credit was within their standards for no deposit.

Hence the statement that, regardless of whether you had a deposit on file with them before filing or not, they can require a deposit or some other "protection" (such as paying the past due bill in full). If you don't do that, then they can cut off your service in 20 days.

[nervousnellie]

After reading some of the posts about having to make Huge deposits after filing I see we were very fortunate! We only had to make a $100 deposit.That was credited with interest a few months after discharge.

[Cali]

If you don't pay your bill(before even filing) they can turn your service off.

If your credit isn't up to par(even before filing)they can require a deposit, if you don't pay the deposit you won't have service.

If you have service, current and file BK, then you are OK.

If you aren't current, file BK, they can still turn service off. To restore service they can require a deposit.

Hope this makes sense, have a bad sinus infection so meds are probably making me loopy in my typing. LOL

??? don't understand that last part.

You can certainly have utility services without having paid a deposit. I know, because all of my utilities, prior to Bankruptcy, didn't require a deposit as my credit was within their standards for no deposit.

Hence the statement that, regardless of whether you had a deposit on file with them before filing or not, they can require a deposit or some other "protection" (such as paying the past due bill in full). If you don't do that, then they can cut off your service in 20 days.

[justbroke]

After reading some of the posts about having to make Huge deposits after filing I see we were very fortunate! We only had to make a $100 deposit.That was credited with interest a few months after discharge.

I don't know why people say it's a "huge" deposit, as it's governed by nonbankruptcy law. If you use "huge" amounts of electricity (natural gas, water, whatever utility), your deposit will be, likewise, "huge". The deposit is two times the monthly six month average. If your deposit was $100, then your usual bill was probably like $50.00. Mine, living in Florida in a sizable home, was $750 for my electricity for the house and $190 for the apartment. That's "huge" to most, but it's relative.

[AngelinaCat]

I don't know why people say it's a "huge" deposit, as it's governed by nonbankruptcy law. If you use "huge" amounts of electricity (natural gas, water, whatever utility), your deposit will be, likewise, "huge". The deposit is two times the monthly six month average. If you're was $100, then your usual bill was probably like $50.00. Mine, living in Florida in a sizable home, was $750 for my electricity for the house and $190 for the apartment. That's "huge" to most, but it's relative.

It's your perspective. BTW Thanks for your clarification of how the utilities arrive at the deposit amount, I had not understood how it was calculated.

But, as I said in my earlier post, if one can't pay $400.00 a month, then an amount almost twice that is *Huge*.

[justbroke]

If you aren't current, file BK, they can still turn service off. To restore service they can require a deposit.

That part is wrong. If you file a BK, they are subject to the Automatic Stay. There is a special section of the Bankruptcy Code which deals specifically with Utility Companies (11 USC 366).

What they can do and must do, after you file, is stop attempting to collect the pre-filing past due amount. Then, they must demand a deposit or you must cure the pre-filing past due amount. You then have 20 days to comply with providing them with either the full past-due amount or the deposit. Generally, the Utility will charge-off the pre-filing amount and just charge a deposit post-filing. (Interestingly, the court can "overrule" the Utilities requested deposit amount!)

I really hate posting part of the code in this otherwise layman's forum, but

11 USC 366(a) -- Except as provided in subsections (b) and (c) of this section, a utility may not alter, refuse, or discontinue service to, or discriminate against, the trustee or the debtor solely on the basis of the commencement of a case under this title or that a debt owed by the debtor to such utility for service rendered before the order for relief was not paid when due.

[justbroke]

But, as I said in my earlier post, if one can't pay $400.00 a month, then an amount almost twice that is *Huge*.

That's what I never understood either. If you can't pay the bill, then how can you pay TWICE the bill???

[Cali]

Since I haven't gone through this, I will go with what you say.

That part is wrong. If you file a BK, they are subject to the Automatic Stay. There is a special section of the Bankruptcy Code which deals specifically with Utility Companies (11 USC 366).

What they can do and must do, after you file, is stop attempting to collect the pre-filing past due amount. Then, they must demand a deposit or you must cure the pre-filing past due amount. You then have 20 days to comply with providing them with either the full past-due amount or the deposit. Generally, the Utility will charge-off the pre-filing amount and just charge a deposit post-filing. (Interestingly, the court can "overrule" the Utilities requested deposit amount!)

I really hate posting part of the code in this otherwise layman's forum, but

[justbroke]

Cali, it just happened to me actually, so that's why I may know a little more on the topic. You are right. Utilities can cut off your service, but they can't do it solely because of the BK. They must follow the rules for utilities when it comes to BK.

Actually, when I filed BK, I got a whole new account number and my bill balance was $0.00! Sweet! (But, alas, now they want a "huge" deposit. ;) )

[TEW]

In the 1300 or so BK's we have drafted, not once did we ever list utility bills as a debt, unless we were discharging the debt. When we did list them, on most-but not all, they asked the client for a security deposit (typically less than what they owed if they paid the past balance), but they had never shut off the utility, unless the client didn't pay the deposit after 30 days or so.

Good Luck

I am taking care of this next Monday. What my lawyer told is to call and tell them I have filed. They will close my account and start a new one. They will want a deposit of an average of 3 months. She said I am not responsible for what I owed before I filed.

[momof5]

We ended up amending to include our Gas and Electric company. The total amount owed was approx $970. That amount has been deleted and a new account number was given to us. Heres the clincher though... It might have been easier to just pay the $970 because we HAD to pay a $650 deposit to keep our utilities and then received a bill for $425 for that month which is now difficult to pay. Not really sure what I am going to do because they are already threatening shut off again! Ugh........

Had I just left it as it was I could have paid the $650 towards the $970 to keep the utilities on and then could have paid a couple of hundred here and there as I would have prevented shut off for a couple of months. Now I HAVE to pay the FULL $425 this month on top of the deposit. Might sound a bit confusing and in the end it just winds up being money that I owe them anyways but I guess I just liked paying on my own terms.

Lesson learned.

[BKParalegal]

But the $970 was discharged, and the $650 is a deposit that will either come back to you or be applied to your balance. Regardless, you still came out $970 ahead.

Good Luck

[momof5]

But the $970 was discharged, and the $650 is a deposit that will either come back to you or be applied to your balance. Regardless, you still came out $970 ahead.

Good Luck

I do realize that and in the big picture am thankful that this was even an option. Its just tough this month as the minimum payment AND the deposit has hit the pocketbook hard. The school supply lists are so enormous this year that I am at the point where I may have to chose. Gas and Electric or sending the kids to school with what they need. We are not doing school clothes at this time as I am fretting about needing just these basics. Both are priority but how do the kids explain why they dont have 7 2" binders with matching colored "PLASTIC" folders. Its so crazy....the specific expensive stuff requested.


My biggest fear is if I dont pay this months payment in full what will happen to the security deposit. If they have to apply some of it to my bill will they then require another $650? its not a good question to call them about though as they REALLY dislike BK