We filed for Ch 7 Bankruptcy on 10/14 in Texas and are using state exemptions. We have very little in assets and what we do have all are exempt. Since we're handling this on our own, I wanted to find out some non-legal advice/opinions before I call one of our utilities to find out what is going on.
At the time we filed, we were behind on a city water bill by several months and owed $175.75. That bill was based on a meter reading of 10/10. We had a $100.00 security deposit on file with the water department and that was listed on Schedule B (item 3) as one of our assets.
On Oct 17, we faxed the Notice of Bankruptcy to the water department because we were within a day or two of having our utility turned off.
On Oct 19, we received a letter via regular first class mail from the city water department that was also dated Oct 19 stating that we had 21 days from the receipt of the letter to pay a security deposit of $100.00 or that our water service would be terminated without further notice. We had expected to be asked for an additional deposit from our utility companies so this did not concern us too much. The letter did NOT say this was to be in addtion to the $100.00 we already had on deposit but was written as we did not have a deposit already on file.
On Oct 21, we received two bills.
The first had a billing date of 10/19, showed a deposit credit of $100.00 applied to our past due amount, and a new current charge of $8.79 (last read date of 10/18), bringing the total amount due by Nov 7 to $84.54.
The second had a billing date of 10/20 but a meter read date now of 10/14 (date we filed for bankruptcy) with a previously billed amount of $84.54 due by Nov 7.
I understand that the second bill was probably a correction, meant to show the reading date of the date we filed since we were supposed to have been starting fresh. I also understand that as of our filing date, we are required to keep our monthly living expenses up-to-date. My question is this:
Questions:
Also, any other suggestions of what might be going on or what I can do? I want to be prepared for whatever they might claim.
Thanks in advance!
At the time we filed, we were behind on a city water bill by several months and owed $175.75. That bill was based on a meter reading of 10/10. We had a $100.00 security deposit on file with the water department and that was listed on Schedule B (item 3) as one of our assets.
On Oct 17, we faxed the Notice of Bankruptcy to the water department because we were within a day or two of having our utility turned off.
On Oct 19, we received a letter via regular first class mail from the city water department that was also dated Oct 19 stating that we had 21 days from the receipt of the letter to pay a security deposit of $100.00 or that our water service would be terminated without further notice. We had expected to be asked for an additional deposit from our utility companies so this did not concern us too much. The letter did NOT say this was to be in addtion to the $100.00 we already had on deposit but was written as we did not have a deposit already on file.
On Oct 21, we received two bills.
The first had a billing date of 10/19, showed a deposit credit of $100.00 applied to our past due amount, and a new current charge of $8.79 (last read date of 10/18), bringing the total amount due by Nov 7 to $84.54.
The second had a billing date of 10/20 but a meter read date now of 10/14 (date we filed for bankruptcy) with a previously billed amount of $84.54 due by Nov 7.
I understand that the second bill was probably a correction, meant to show the reading date of the date we filed since we were supposed to have been starting fresh. I also understand that as of our filing date, we are required to keep our monthly living expenses up-to-date. My question is this:
Questions:
1) Was the water company entitled to go ahead and apply the $100.00 deposit to the amount of the account that was outstanding as of 10/14 or should the the $175.75 been "set aside" until the debt was
discharged?
2) And if they weren't supposed to touch that $100.00 deposit until the courts said they could, do they have to apply that towards the new $100.00 deposit they are now asking for or can they now say they need a $200.00 security deposit?
3) What do I need to do if they weren't supposed to do this and they won't correct it on their own?
discharged?
2) And if they weren't supposed to touch that $100.00 deposit until the courts said they could, do they have to apply that towards the new $100.00 deposit they are now asking for or can they now say they need a $200.00 security deposit?
3) What do I need to do if they weren't supposed to do this and they won't correct it on their own?
Also, any other suggestions of what might be going on or what I can do? I want to be prepared for whatever they might claim.
Thanks in advance!
I'll be watching, you may never know when or how, but I'll be there. I am there now....
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