Payments due for utilities??

[ecsclb1724]

What is the proper course of action for utilities due at the time of BK?

I currently have electric bills, water bills, cell bills, and cable bills that are all due, but not past due. Since you have to list ALL bills due, does that mean these bills don't have to be paid the month I file?

Are utilities protected by the automatic stay?

What happens to deposits paid? I know my bill right now for my electric is $160 due at the end of the month, I have a $300 deposit with them. I know they'll give me a new account, but will that $300 be lost or applied to a new deposit (which I'm sure I'll have).

Any ideas?

[justbroke]

I currently have electric bills, water bills, cell bills, and cable bills that are all due, but not past due. Since you have to list ALL bills due, does that mean these bills don't have to be paid the month I file?

Right, if you file with your utilities included as a creditor... you do not need to pay until you get your bill (and possibly new deposit requirements) after you file. The utility will create a new account for you.

Are utilities protected by the automatic stay?

They do enjoy some special privilege under 11 USC 366. When you include them and are current, they could still impose a deposit on you (as provided under 11 USC 366).

What happens to deposits paid? I know my bill right now for my electric is $160 due at the end of the month, I have a $300 deposit with them. I know they'll give me a new account, but will that $300 be lost or applied to a new deposit (which I'm sure I'll have).

If you already have paid a deposit, then the deposit would be used to "offset" your account. Anything that is left over, would be applied to a new deposit. You may also be required to send in an additional deposit. You do not "lose" any of your prior deposit... it's just used to offset any loss from the utility. Any residual must be returned to you, although they may ask for a new deposit.

[whipster1]

My attorney said those are considered monthly living expenses, and unless you WANT to BK them and go through the hassle of setting up new accounts, deposits, etc you just pay them normally and don't include them as a creditor. That is what I did.

[aljohnson007]

Agree with Whip. Just keep current and don't include in bk.

[klandsb]

I filed Chapter 13 on 10-22-09. Owed nothing to the electric company and did NOT include any of my utilities of my filing. Lo and behold about 10 days later got a letter stating we received notice that you file bk and we have close acct# so and so and opened acct # so and so and if you dont pay $220.00 security deposit by 11-1209 your electric will be shut off.. I called them right away and they said that is there policy . So in the time from my last bill & the date they finaled the accout I incurrred $ 84.00 that they said do not pay. And the first creditor to file was guess who..The electric company. ughhh.. So I paid the $220 yesterday and have no plans on paying the $84.00 and THAT IS MY POLICY... huh

[AngelinaCat]

We filed Ch7 on 12/28/2007. Several months prior to that we had been charged a $791.00 deposit because we had fallen late paying our electric bill. We had to list that deposit in our paperwork, which was then considered an Asset, when we were ruled an Asset case. We actually had to buy that deposit back when we bought the rest of our non-exempt stuff back from the BK estate--though everything was discounted.

That $791.00 had to be paid as a lump sum in full or our electricity would be shut off. There were no ifs, ans, or buts. That really hurt trying to come up with that money. After all, the reason we were planning BK was because we couldn't pay our bills. HELLO!

[justbroke]

Please be aware that in some Districts, the Utility companies "subscribe" to the local Bankruptcies! Just as the IRS and local/county property assessor (tax office) does in many cases, some utilities are automatically included on the Mailing Matrix.

In my District, I was shocked that the local county was included, even though my home was in another Florida county! They also included the Florida Department of Law Enforcement, the Florida State Department of Revenue and the IRS... all "automatically". I have read where some utility companies (not in my District) are included automatically in some Districts.

Just be aware of this.

[ecsclb1724]

We filed Ch7 on 12/28/2007. Several months prior to that we had been charged a $791.00 deposit because we had fallen late paying our electric bill. We had to list that deposit in our paperwork, which was then considered an Asset, when we were ruled an Asset case. We actually had to buy that deposit back when we bought the rest of our non-exempt stuff back from the BK estate--though everything was discounted.

That $791.00 had to be paid as a lump sum in full or our electricity would be shut off. There were no ifs, ans, or buts. That really hurt trying to come up with that money. After all, the reason we were planning BK was because we couldn't pay our bills. HELLO!

what a nightmare!!! an almost $800 DEPOSIT??? That's insane! I'm assuming you included the past due balance in the BK then so you at least weren't responsible for that?

[klandsb]

I know its beyond my control but really I didnt realize everybody and there brother would be notified. I just thought the people I owed money too and were included in my bankruptcy would be...Guess I will start mailing in my taxes since I dont want to see the tax collector face to face anymore... I know some will say who cares, but it does matter to me... Its just who I am...Cant teach an old dog new tricks !!!

[nickifan]

I know its beyond my control but really I didnt realize everybody and there brother would be notified. I just thought the people I owed money too and were included in my bankruptcy would be...!!!

I also am considering Ch 7 but need to wait until I've lived in this state two years, so I don't have to use the property exemptions of my previous state (NY.)

But...back on thread here...could someone please expand about this "mailing matrix"? I too just assumed that only current creditors would be notified?
Would the property management at my (rental) apartment complex be notified? (I sure don't want them to know I'm unemployed and broke...and I just signed a new one-year lease because clearly I can't go anywhere else without money in the bank and a job!) Would the utility company be notified? Like one of the other posters I would not stop paying electric, water, cable...I would not plan to include them in the BK.

I am doing an initial consult with a BK attorney tomorrow....

[justbroke]

But...back on thread here...could someone please expand about this "mailing matrix"? I too just assumed that only current creditors would be notified?

First, the Debtor needs to provide a Mailing Matrix containing all of his creditors. However, by local rule, the Clerk will automatically place certain "creditors" on the Mailing Matrix without your request. in my District, the automatic placement includes the Florida Department of Law Enforcement (for child support and the like), the Florida Department of Revenue (taxes), the Tax Assessor for the County in which you live, and the Internal Revenue Service.

Would the property management at my (rental) apartment complex be notified?

If they are not on your mailing matrix, they are usually not notified. However, some attorneys file electronically and "sometimes" the system automatically notifies everyone "mentioned" on any schedule in your petition. For example, if your attorney uses Best Case Bankruptcy, the attorney or paralegal must insure that the "Exclude from Mailing Matrix" checkbox is actually checked if you don't want them on the mailing matrix and receiving notice.

If you are renting and have a lease... you certainly need to inform the lessor. This is because you hold a lease which can be "rejected" (or canceled) by the Bankruptcy. Also, you may have a deposit with the landlord which may be subject to the Bankruptcy Court.

Please speak with your attorney about these issues.