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    Household utilities

    I am a little puzzled, I asked my lawyer a few questions which led to her telling me all my utility accounts will be closed when filing bankruptcy, and then I will need to reopen with potentially a deposit. Has anyone experienced this?

    #2
    Typically this is not a problem unless you a.) included your utility account in the bankruptcy, and b.) there was a balance that will be discharged. If you are current with the utility this is usually not an issue at all. That's from my personal experience.

    So the real question is whether you're including any utility bill in your bankruptcy.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      If you are in arrears--meaning that you have a past due balance above and beyond normal monthly charges--then the utility company is a creditor, and the debt must be scheduled, and will be discharged. Upon receiving notification from the bankruptcy court, the utility company will close out your existing account with the balance owed, and open a new account with zero starting balance. They may require a deposit, however the automatic stay prevents them from terminating service if you can't come up with the deposit monies right away.

      If you are not in arrears, then the utility company is not a creditor and will not be notified of your bankruptcy. The ongoing monthly charges are not considered debt, but rather living expenses. You simply keep paying your bill each month, and nothing should change.

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