Utility companies are permitted to shut-off utility services if the individual fails to pay the bill. Obviously, we can't do without power, gas, or water. Fortunately, bankruptcy will prevent the utility company from terminating the service.
In a Chapter 7 case, the outstanding utility balance can be discharged through the bankruptcy. The utility company may require the debtor to post a deposit in order to receive future utility service. But the required deposit amount is often substantially less than the outstanding balance owed.
In a Chapter 13 case, the outstanding balance is included in the Chapter 13 plan. In many cases, all or part of the balance is discharged through the bankruptcy process.
If you would like to discuss your options related to a utility debt, contact us for a free consultation.