For many, making ends meet while trying to manage debt can be incredibly overwhelming, which could lead you to fall behind on payments, including your utilities. As a result, you may find that your services can be shut off as a result of non-payment. If you have received a notice that your gas, water, or electricity is going to be shut off, you may wonder if there are any steps you can take to prevent this from occurring. Alternatively, you may wonder if filing for bankruptcy can trigger a shut-off of your services. The following blog explores what you should know about what will happen to your utilities if you plan on declaring bankruptcy, as well as the importance of working with Franklin County bankruptcy lawyers to help you through these difficult times.
What Is the Automatic Stay?
When you file for bankruptcy, you are granted what’s known as an automatic stay. Essentially, this means that all collection efforts against you must cease. As such, you cannot be contacted regarding your debt, and wage garnishments, lawsuits, and foreclosures must stop.
The automatic stay will last the duration of your bankruptcy case. If you file Chapter 7, which is a liquidation process in which some assets will be sold to repay creditors, this process typically takes six months, while Chapter 13, which is a repayment-based plan, can last three or five years, depending on your circumstances.
Can My Utilities Be Shut Off When I File Bankruptcy?
Utility shut-offs are included in the automatic stay, with an exception. Once you file for bankruptcy, your utility provider will be notified, and they must cease all efforts to shut off your services. However, this temporary stay will only last 20 days. Within this timeframe, you have the ability to show that you have the means to continue making payments in the future. As such, if you can place a deposit or provide adequate assurance of future payment, your utilities will not be shut off.
You should also note that during bankruptcy, past-due bills are considered dischargeable debt. As such, you can have these payments wiped at the end of your case. If you file Chapter 13, which is a repayment-based plan, your past bills will be included in your monthly payments, and the remaining balance will be discharged at the end of your case. However, you will still need to pay your current and future bills once your filing is complete.
As you can see, there are several important considerations you must factor in when pursuing bankruptcy. That is why it’s imperative to connect with an experienced attorney to help guide you through these difficult times. At Cousino & Weinzimmer LLC, our team is ready to help you reap the full benefits of the bankruptcy process. Contact us today to learn more.
