Verizon and BK7

[chubbs]

Just wanted to post this in case it helps someone out there.

I included Verizon Wireless in my BK7 and was just approved for service with no deposit. I check my reports everyday and noticed Verizon had updated my account to IIB with a zero balance and figured I'd app it and see what happened. 3 hard pulls from Verizon across the board. Just to note my EX lender pulled score stands at 478 as of a week ago. The credit challenged should have no trouble signing up.

[justbroke]

Utility and cellular phone companies generally do not look at credit scores at all. They are concerned about past payment behavior with... utility and cellular phone companies. If you have collection accounts for cellular, cable, water, gas, electric, and others, they will want a deposit.

[bcohen]

Utility and cellular phone companies generally do not look at credit scores at all. They are concerned about past payment behavior with... utility and cellular phone companies. If you have collection accounts for cellular, cable, water, gas, electric, and others, they will want a deposit.

Apparently, Verizon doesn't even care about that, if it was possible to BK a balance owed to them, and then be approved for new service with them.

[justbroke]

Apparently, Verizon doesn't even care about that, if it was possible to BK a balance owed to them, and then be approved for new service with them.

BK'ing a balance is entirely different from poor performance (collections) with utility companies. Trust me, I know from experience. I BK'd a balance with my cable provider. Within two weeks after filing, I had service restored! They care more about what's on the credit report and how you paid utility companies, than anything else.

A bankruptcy is a "special" case and they are VERY careful (in the majority of cases) of getting in trouble for attempting to collect the old debt. They "could" just charge you a deposit, but in both cases (my cable and electric company), I did not need a deposit after filing on those companies.

[bcohen]

So are you saying that even if your utilities are in collections, or previously were, that filing for bankruptcy will "fix the problem" and allow you to obtain service again?

[justbroke]

So are you saying that even if your utilities are in collections, or previously were, that filing for bankruptcy will "fix the problem" and allow you to obtain service again?

Bankruptcy would discharge the old debt and the utility would be forbidden by law (the permanent discharge injunction) from collecting. The key question, after filing, would be whether or not a deposit is required.

You would certainly be able to obtain service and that is a protected item in 11 USC 366. (Noting that in most States, cellular phone service is not considered a utility, but the larger operators, AT&T and Verizon, are "phone" (utility) companies that provide cellular service. I have not read one instance in which the major cellular companies did not adhere to 11 USC 366 and the permanent discharge injunction.)

[tobee43]

i just wanted to add something here. before we bk'ed we keep current on all our utilities and verizon. it did in fact matter with utilities. we were and remain perfect payers of all connected or related bills. yet, when we rented prior to filing and still will good scores we were told by progress energy for a HUGE deposit! AND was still current with them, never late with our utilities in over 30 years. when i asked progress about it, they said it was solely based on our credit scores which were still in the 800's!!! i may have been because we moved from up north to florida which was one of the states first to be hit with the economic crisis. people were running from their homes here back then and i'm certain the utility companies were getting killed!!

i found out process was only allowed to keep the money for 2 years. i called them promptly for the return of the deposit and added they must include interest, which they did!! our verizon was never effected, although, we never listed them.


just a note our part of florida progress energy was brought out a few months ago by duke energy, i was hoping it would be cheaper, that was joke!

[justbroke]

There is something seriously wrong with Progress Energy in your case, unless that specific apartment/rental had collection issues. (I had cases where I also had very high scores, perfect payments, and National Grid tried to get me to pay a deposit on natural gas because the prior tenant was way past due and it was a "trend" for that building.) I believe utility companies use a combination of factors, but prior history is the most important. I may have asked the PUC to step in if a utility attempted to charge a deposit where a deposit was not applicable. In most States, how the PUC determines and requires deposits is strictly controlled by law or regulation.

In the case of my natural gas issue with National Grid, I was able to avoid the deposit by showing them that I was NOT a credit risk (through my prior accounts with them, other utilities, and my high scores).

[AngelinaCat]

We fell behind on our payments to Florida Power & Light. We tried to pay a little bit each week. But still fell behind--this after about 30 years of a perfect record.

We were charged a huge--to us--deposit of $790.00 just to keep the service on. This occurred right when we were having trouble mustering up $100.00 a week to pay them. We scrapped it together somehow--I don't remember now what we did. But what irked my gurk, was that the deposit was considered an 'Asset' in our case. 'Asset' my flying rear end! To me it was--and still is--a huge penalty!

It also irked me that this was one of the things that we had to buy back from our BK Estate, because we could not exempt them.

I wonder what would have happened had we told the trustee that we would buy back everything else, but NOT that? We did not do that however. The trustee was kind and offered us a discounted amount on the whole package over what it could have been. So it all worked out.

[tobee43]

jb, i gave them that argument, in addition the fact we had a current open account with them ( the co changed 5 times since we had the lights turned on), that we had a perfect record. they insisted it was all credit score driven which again made no sense whatsoever. fact was, we had no chose. i think ours wasn't as bad as ms. cats, ours was in the high 500's. nonetheless i did end up after reaching the two year mark and the PUC did step in and was on the phone with me giving them the directive to give me back my money yesterday! you right tho jb, i should have called from the beginning, but frankly, we were just riding on the edge with the move and all, i just did what ever asked just to get that move going. it also may have been the fact we had two places going at the same time?

angelinacat: I wonder what would have happened had we told the trustee that we would buy back everything else, but NOT that? We did not do that however. The trustee was kind and offered us a discounted amount on the whole package over what it could have been. So it all worked out.

hahahaha....now that would have been an interesting one!!

[justbroke]

tobbee, my dear. I was suggesting that I would have gone to the PUC immediately after I personally read the rules on deposits. I actually do not like arguing with customer service representatives (CSR) because they generally just "toe" the company line. It is usually not the CSR's decision, but navigating a utility company is frustrating and I believe they put obstacles in the way on purpose. A utility company, such as a sole provider or electric or other energy services, knows that you need them more than they need you. They tend to flex their muscles a bit more than they should.

I actually sued one, and won a settlement.

[chubbs]

Utility and cellular phone companies generally do not look at credit scores at all. They are concerned about past payment behavior with... utility and cellular phone companies. If you have collection accounts for cellular, cable, water, gas, electric, and others, they will want a deposit.

I had 4 different accounts with Verizon listed in BK, 3 charged off, 1 in collections. 2 different electric companies. Nstar in Ma, Narraganset Electric in RI, both charged off. Nstar is still reporting a balance. I'm still a month away from discharge.

I'm not bragging, just want to illuminate the picture for you all. I've no doubt that most utility companies would require me to lay down a hefty deposit should I need service.

I think Verizon just wants the money coming in.