Utilities

[smallchange]

I plan on filing before end of august and i will probably have to list my electric bill which is now over 600.00. Even if i could pay it or make a plan with the electric co. would this be considered preferential treatment or are utilities different from the cc's? If i include them when do i start paying them again?
After the 341 meeting? After discharge? Its not like cc"s where i am making no more charges,the amount keeps rising. I pay 165.00 every month for electric on my budget plan(electric heat) but i am several months behind. I could start paying the 165.00 again but they will probably apply this to the past due amount that i will be trying to discharge. I know i will have pay a deposit in the future but i would like to when i shoukd start paying again?
Thanks for your help,i have learned alot from this forum.

[robivi3]

Utilities are a necessity. I would not advise filing on the electric bill. You need service. No Trustee would even question this. Cable, Electric, Cellular, Phone service, Water are not considered extras.

[hhou812hh]

preferential treatment payments are generally unsecured debts and loan payments to "insiders" such as friend & relatives. Even paying past due back rents can fall into this as well. Since utility bills are some what based on current expenses because you are receiving the actual service now (unlike a credit card/ buy now pay later) this should be ok.

This is a section of the code that I always found to be very STUPID anyway. I can understand 30 to 45 days even but 90 days for anyone and a year for insiders is ridiculas as far as I'm concerned. Congress created this one just to give the trustee a bigger % of $ to collect already paid debts.

[davidb81]

ya my friend filed on his electricity. big mistake when he went to set it up again, they wanted a 300.00 deposit.

[originalhealer]

I don't consider that to be a mistake. The law says to list ALL debts. I did exactly that. I had a balance on my electric bill of approx. $160.00 or so. I filed July 20, and two days ago, the electric company sent me a bill where they apparently have wiped out my old debt and are starting me over from scratch. They are asking for a $180.00 deposit plus a $22.00 reestablishment charge. The deposit is based on an estimate of approximately two month's worth of electricity for my apartment.

I think that this is fair and would have been even more fair had my balance been a lot larger, as yours apparently is. List ALL debts. The electric company will start you over from scratch.

[originalhealer]

Also, the phone company was even more reasonable. They wiped out my old balance and are not even asking for a new deposit, and I still have my DSL access and unlimited long distance.

[smallchange]

Heres how it works

Electric co. must abide by automatic stay,they cannot shut off service. On the date i file they will close my account and whatever is owed will be discharged in bk. They will open a new account immediately probably requiring a deposit. Of course from this point on if the bill is not paid they will shut off service and the deposit will be lost. My attorney told me to include them as a creditor rather than try to work out a payment plan,it won't make me any worse off than i already am.

[davidb81]

I don't consider that to be a mistake. The law says to list ALL debts. I did exactly that. I had a balance on my electric bill of approx. $160.00 or so. I filed July 20, and two days ago, the electric company sent me a bill where they apparently have wiped out my old debt and are starting me over from scratch. They are asking for a $180.00 deposit plus a $22.00 reestablishment charge. The deposit is based on an estimate of approximately two month's worth of electricity for my apartment.

I think that this is fair and would have been even more fair had my balance been a lot larger, as yours apparently is. List ALL debts. The electric company will start you over from scratch.

I sooo did not mean for that to sound the way it did! You did do the right thing in listing it. you were behind in your bills my friend wasnt. his was a mistake in listing the electric company with his creditors. In doing so of course the electric company was notified that they were listed in the bk. so he pretty much filed on a 75 dollar payment he was current on. they then required him to make a deposit on the new account. Im sorry for the way that sounded. you did the right thing by listing them Good luck to ya!