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Utility Companies in Ch 7

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MyDataMyChoice
Valued Contributor

Utility Companies in Ch 7

How do Utility Companies handle Chapter 7?

 

i.e.  National Grid Gas/Electric?

Have a client with a 2,000 electric bill, and 2,000 Gas Bill (many months past due - under a 24 month payment arrangement)

 

They are filing Ch7 - Will these "Go Away"

 

Big Question - Will the utilities be turned off?    

 

 

What about Water Bills?

Sewer Bills?

Sewer Assessments?

 

 

 



Message 1 of 5
4 REPLIES 4
Jnbmom
Credit Mentor

Re: Utility Companies in Ch 7

When they file for BK the utility companies can not shut off service as far as I know, once they file the util company can not collect any past due bills etc.

 

After filing though you have to provide the utility companies with assurance that you can adequately  pay for future service, if you don't comply they can disconnect, then you would have the get the BK judge involved. Also they can/may require a security deposit for future services

EXP 780 EQ 791TU 795
Message 2 of 5
FireMedic1
Community Leader
Mega Contributor

Re: Utility Companies in Ch 7

I'm with Jnbmom. Look for a deposit request coming.


Message 3 of 5
Anonymous
Not applicable

Re: Utility Companies in Ch 7

The utility companies that i filed on our chapter 7 required a 500 dollar deposit to continue services
Message 4 of 5
despritfreya
Frequent Contributor

Re: Utility Companies in Ch 7

Pursuant to 11 U.S.C. 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.

 

(b)Such utility may alter, refuse, or discontinue service if neither the trustee nor the debtor, within 20 days after the date of the order for relief, furnishes adequate assurance of payment, in the form of a deposit or other security, for service after such date. On request of a party in interest and after notice and a hearing, the court may order reasonable modification of the amount of the deposit or other security necessary to provide adequate assurance of payment.

 

(c)(1) (A) For purposes of this subsection, the term “assurance of payment” means—

(i)a cash deposit;
(ii)a letter of credit;
(iii)a certificate of deposit;
(iv)a surety bond;
(v)a prepayment of utility consumption; or
(vi)another form of security that is mutually agreed on between the utility and the debtor or the trustee. . .
 
Des.
Message 5 of 5
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