Utility Bill

[ccfriend]

Yet. You probably will. I was typing my answer when 'Hub slipped in.

We filed Ch7 on 12/28/2007. Several months BEFORE that we had been charged a $791.00 deposit because we had fallen late paying our electric bill. We had to list that deposit in our paperwork, which was then considered an Asset, when we were ruled an Asset case. We actually had to buy that deposit back when we bought the rest of our non-exempt stuff back from the BK estate. So we ended up paying the blamed thing TWICE!!

That $791.00 had to be paid as a lump sum in full or our electricity would be shut off. There were no ifs, ands, or buts. It really hurt trying to come up with that money. After all, the reason we were planning BK was because we couldn't pay our bills. HELLO!!

I do not understand why that deposit was considered an asset. To us it was a HUGE penalty. Perhaps justbroke knows why.

My plan was confirmed in Aug of 2008...This is where I think 7's have it so much easier....after discharge they are done....I hate this under the scope for 5 years. I have a meeting with my lawyer tomorrow. His office called to set up an appoint to meet with me to see how things are going. I am a little skeptical about this meeting. They said they are meeting with all their clients and it will be a quick easy in and out thing. Chapter 13 gets more and more interesting!

[walkthaplank]

One important note, deposits amounts and circumstances under which they can be imposed is regulated by your state's public utilities regulatory body, or in the case of a municipal utility, by the city council. Also they cannot pick a random number and have you pay that as your deposit, it must be justified by the average monthly billing at that address.

[ineedinfo]

Sorry to hear that Nanzee; hope all goes well.

For the others, now I have something else to worry about! How long do the utilities have to do this? I've already made my second payment to my 13; I filed around the end of October & had my 341 already...would the utilities have done this by now? How much can they charge you? I paid a deposit already.

[Nanzee]

Thanks all for your responses. I am going to get a money-order tomorrow for the $175.00, and bring it in to their office, and of course get a receipt. I will just keep doing what needs to be done, what else can I do, we filed and I can't go back now.

I have to hope that once we have our meeting next month, and then the one in January before the judge, that I will finally know what the hell is going to be expected of us, and I can just start following through.

This may have been a mistake, but, I have to look at some of the positives - we can once again keep our phone on, as we are not being bombarded by non-stop collection calls. And I sent out my mortgage payment for December, before the 1st of the month, which I have not been able to do for months. We are now current with our car loans, and I can even pay the cable bill before they threaten to cut us off.

Of course if our payment is raised significantly (are supposed to pay $450.00 to trustee a month), well, I am trying not to think about that, because it would be difficult to do so. I am just glad there is a forum like this to vent, so again, I thank you all.

[AngelinaCat]

That is interesting. I didn't know this. I never received anything from my utility company.

Yet. You probably will. I was typing my answer when 'Hub slipped in.

We filed Ch7 on 12/28/2007. Several months BEFORE that we had been charged a $791.00 deposit because we had fallen late paying our electric bill. We had to list that deposit in our paperwork, which was then considered an Asset, when we were ruled an Asset case. We actually had to buy that deposit back when we bought the rest of our non-exempt stuff back from the BK estate. So we ended up paying the blamed thing TWICE!!

That $791.00 had to be paid as a lump sum in full or our electricity would be shut off. There were no ifs, ands, or buts. It really hurt trying to come up with that money. After all, the reason we were planning BK was because we couldn't pay our bills. HELLO!!

I do not understand why that deposit was considered an asset. To us it was a HUGE penalty. Perhaps justbroke knows why.

[AngelinaCatHub]

Yes after having this account for 50 years (in wife's family name) they wanted $791. THEN it went as an asset would you believe? 'Hub

[ccfriend]

That is interesting. I didn't know this. I never received anything from my utility company.

[justbroke]

Wow I did not know this. What if you had to pay a deposit to open the account? Can they make you pay another one after you file?

Absolutely. This is called a right of setoff. Utility companies are special in this regard. They can take your pre-filing balance and "offset" it against deposit! They can then demand a new deposit and by law (11 USC 366) they can demand it to be paid in 20 days.

[fireman32]

Wow I did not know this. What if you had to pay a deposit to open the account? Can they make you pay another one after you file?

[justbroke]

I was about to mail them my regular payment, which is higher than this. Is this normal?

Yes, under 11 USC 365, Utility companies can charge deposits after you file... especially if you BK'd some of the debt owed to them!

Should I send this certified mail, or bring it in in person? This is yet another thing my attorney failed to tell me. Are they going to threaten me every month with cutoff of my services? Thanks for any responses.

They aren't going to threaten you every month, unless you don't pay your bill or don't pay the deposit! Utility companies are not subject to the Automatic Stay imposed by 11 USC 362... after 20 days of notification of deposit.

[lrprn]

I just received letter from my utility bill stating that I have to send them payment of $175.00 within 20 days by certified check, or money order, in accordance given under the Bankruptcy Act, or they will disconnect my services immediately. I was about to mail them my regular payment, which is higher than this. Is this normal?

Unfortunately, since the economic downturn some local utilities have started this policy for new filers, but not all of them. It just depends on your local utilities whether they want to institute that policy or not.

It's too bad that your utility company was one of those who went this direction. You really don't have a choice but to pay up if you want to keep your service in place And your lawyer may not have known this utility now requires a extra payment after filing - be sure to let him/her know so that can be shared with other future clients.

Should I send this certified mail, or bring it in in person?

Either is fine. Just be certain that you set the mail up to get a signature return receipt from whoever accepts the check sent by mail, or you get a receipt from whoever accepts your payment when you pay in person at the utility office.

[klandsb]

Hello Nanzee.. I recieved notice very shortly after my filing that my electric would be shut off unless I paid a security deposit....ughhhh... I was current on my bill, called and they said its there policy that anyone that files bk will pay a security deposit...
Oh well, didnt pay my bill that mth, and paid the security deposit online....
Yep just one of those things no one tells you about !!!!!!!!

[Nanzee]

I just received letter from my utility bill stating that I have to send them payment of $175.00 within 20 days by certified check, or money order, in accordance given under the Bankruptcy Act, or they will disconnect my services immediately. I was about to mail them my regular payment, which is higher than this. Is this normal? Should I send this certified mail, or bring it in in person? This is yet another thing my attorney failed to tell me. Are they going to threaten me every month with cutoff of my services? Thanks for any responses.