This is the third and final part of a blog series covering frequently asked questions regarding utility bills and bankruptcy. Because the coldest months of the year are just beginning, it’s important to keep gas, water, and other utilities running to protect your household or business from frozen pipes and interrupted hot water sources.
When you’re unable to pay monthly utility bills, you risk service shut off when debts accumulate. Filing for bankruptcy relief can stop service shut offs and discharge utility debts permanently. If you are considering filing for bankruptcy, Behm Law Group, Ltd. can help you through the process and find effective, permanent debt relief in Owatonna, MN and the surrounding area.
These are a few more of the most commonly asked questions about utility bills in bankruptcy.
Is my cable considered a utility? How can I stop it from possibly being shut off?
While cable television is not technically a utility, it’s still a service that will be shut off when you default on your monthly bill payments. Fortunately, cable bill debts can also be included in your bankruptcy and can be permanently discharged. If you list your cable debt amount, the automatic stay injunctive provisions of 11 U.S.C. §362 will apply to your cable provider and to all of your other utility providers, and your cable television debt will be discharged with all of your other unsecured utility debts.
My provider is asking for a large security deposit to reconnect my service. Can the bankruptcy court help me pay it?
One form of adequate assurance (see part two to learn about adequate assurance) your utility provider might require from you in order to continue service is a security deposit amount that is too much for you to pay. If you filed for bankruptcy protection, the bankruptcy court will be able to help. When you cannot come to an agreement with your utility creditor about the security deposit amount, you can request the bankruptcy court to reduce the security deposit to an amount that you can afford to pay.
I’ve paid my bills on time for a year now. Can I get my security deposit back?
If you filed for bankruptcy relief, provided a security deposit as an assurance, and then paid your bills on time for the twelve-month period after your bankruptcy was concluded, you may be eligible for the return of the security deposit. Reach out to your utility provider for more information about the possible return of your security deposit and how that process might work.
To learn more about the treatment of utility debts, unsecured or secured debts, and the process of obtaining permanent debt relief by filing bankruptcy in Owatonna, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 or stephen@mankatobankruptcy.com.
