Utlities and Bankruptcy

[spearmint]

I am behind severely in utilities. They are threatening shutoff and I cannot pay. Will filing stop them shutting it off?

[tobee43]

i'm not certain if it will help them not shutting you off, however, it will get rid of the bill. i would call them and attempt to work out a payment plan, you need your utilities!...and food and clothes...and

[spearmint]

I am already on a payment plan, a budget plan. The trouble is I owe about $1800 and the only way to keep the power on when I couldn't pay it was to put me on the budget plan. I don't know why all of a sudden I am getting these flyers in my door that scare me to death.

I pay $250 a month on the 10th of every month - religiously! However, when I called a month ago it said by balance was $450 more (in addition to the $1800). I have NO idea why this would be so I called and left a message for the supervisor who has helped me in the past but I got no return call.

I was hoping that if I did a BK, they would erase the debt and put me in a new account.

[shark66]

First of all, filing BK over $2K is not a good deal. Not by a long shot.

Secondly, there might be a simple accounting mistake somewhere. If you have the copies of your checks/money orders/whatever method you used to pay, call them and go over every red cent with a fine tooth comb.

Good luck.

[tobee43]

First of all, filing BK over $2K is not a good deal. Not by a long shot.

Secondly, there might be a simple accounting mistake somewhere. If you have the copies of your checks/money orders/whatever method you used to pay, call them and go over every red cent with a fine tooth comb.

Good luck.

agreed, if that is the only bill you have, you most certainly should not consider filing bk. however, i would still attempt to work out a payment plan with them. usually if they will not, you can call your state or local utility board...in nj it's the PUC, however, which ever agency governs the utilities should also be able to step in to held a helping hand for you.

best of luck!

[spearmint]

agreed, if that is the only bill you have, you most certainly should not consider filing bk. however, i would still attempt to work out a payment plan with them. usually if they will not, you can call your state or local utility board...in nj it's the PUC, however, which ever agency governs the utilities should also be able to step in to held a helping hand for you.

best of luck!

It is BY FAR not the only bill I have. I have thousands of dollars I need to get rid of but this one worries me the most because I need electric.

What I think may have happened is that, although I pay on the 10th of every month, I think perhaps the due date changes because not every month has 31 days

[tobee43]

It is BY FAR not the only bill I have. I have thousands of dollars I need to get rid of but this one worries me the most because I need electric.

What I think may have happened is that, although I pay on the 10th of every month, I think perhaps the due date changes because not every month has 31 days

that has happend it us as well, where the company changed the due date without warning! terrible.

even if this is not the reason you are deciding to file, you still need them whether you file or not, so really, i would try to work it out with them. you don't want your lights turned off!

[spearmint]

that has happend it us as well, where the company changed the due date without warning! terrible.

even if this is not the reason you are deciding to file, you still need them whether you file or not, so really, i would try to work it out with them. you don't want your lights turned off!

Perhaps my question should be, if I file bankruptcy and I am able to get rid of a lot of debt, including the past due balance on my electric bill, can the electric company deny me service after bankrutpcy?

[justbroke]

Perhaps my question should be, if I file bankruptcy and I am able to get rid of a lot of debt, including the past due balance on my electric bill, can the electric company deny me service after bankrutpcy?

Absolutely not. They can't deny service.

Be aware that the Utilities enjoy "special" protection in bankruptcy. Under 11 USC 366, they are entitled to "adequate protection" through seeking a deposit within 20 days of filing. They must, however, ask for one. If you don't provide adequate protection, you will be subject to shutoff again, without protection.

So, the pre-petition (pre-filing) charges would be discharged. The utilities typically close the old account and start a new account. The start of the new account may require a deposit and you'd be responsible for that deposit. You could petition the court, under 11 USC 366, if the deposit doesn't apear to be reasonable. However, most deposits are set by State non-bankruptcy "PUC" laws.

[spearmint]

Absolutely not. They can't deny service.

Be aware that the Utilities enjoy "special" protection in bankruptcy. Under 11 USC 366, they are entitled to "adequate protection" through seeking a deposit within 20 days of filing. They must, however, ask for one. If you don't provide adequate protection, you will be subject to shutoff again, without protection.

So, the pre-petition (pre-filing) charges would be discharged. The utilities typically close the old account and start a new account. The start of the new account may require a deposit and you'd be responsible for that deposit. You could petition the court, under 11 USC 366, if the deposit doesn't apear to be reasonable. However, most deposits are set by State non-bankruptcy "PUC" laws.

Thank you.

I am sure it varies from state to state but do you have any idea how much the deposit would be in Michigan?

Isn't it odd that you file bankrupty to get rid of debt that you can't pay and they turn around and ask for a deposit, knowing that you can't file for seven years.. This means you need to have money behind you to file bankruptcy! totally insane.

[justbroke]

I don't know for Michigan, but the "typical" PUC takes a six-month average (to come up with the average per month over the last six months), and then multiplies it by 2 (to cover 2 months).

Again, you could ask for a reduction in the deposit, but you need to file a Motion and request a hearing on that Motion for a reduced deposit.

Typically, people have lots of money after filing Chapter 7 (and/or Chapter 13) when they stop making their payments on unsecured debt.

[goon]

Also if you think something is off in your utility bills check the meters and make sure the reading matches (within reason) what is on the bill. I had a case where one month my electric bill was 4x a normal bill, went out and checked and the meter reader had typo'd the reading, the reading they had on the bill was way above the current reading. Also had one time that the meter reader decided to try and read the meter from 15 feet away over the fence, because I had a dog in the yard (I didn't know that they were still manually reading there). Of course if they have upgraded to the meters that self-report usage then this is not near the issue that it can be, but still check those numbers to assure that you are not being over charged.

[keepsmiling]

There are a few different ways to get help with your utilities. You may be eligible for LIHEAP or something similar. Start asking around.