If include the xcel energy $760 in the bk, what is the typical deposit they would require? I don't want to call and tip them off that I am planning on it...just curious, I'm in MN so protected by the cold weather rule until April 1st. Should I pay something to keep it on like 200? then bk the rest? Would it even be worth it? I'm renting and dont want my landlord to have to pay a deposit when he moves back...
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Most utility companies will create a deposit in the amount of twice the average bill over the previous 6-12 months. Hopefully, you company uses 12 months to even out the periods where the bill could be higher.Originally posted by thyrazure View Post
Your landlord would not need to pay a deposit, unless you're saying that the bill is in the landlord's name? In any event, if your utility bill is $200/month, then twice that would be $400. That would be cheaper than paying the bill down to $200. You will need to decide what is best for you. You could anonymously call Xcel Energy and ask if the deposit calculation is based on 6 or 12 months. The deposit is controlled by Minnesota Rules 7820.4500 (https://www.revisor.mn.gov/rules/?id=7820.4500)
Warning! Please make sure you save the money that you would have paid the utility company. You are almost certainly going to need it for the deposit once your account is closed. The utility company WILL close your account when you file. They will open a new account. They may or may not require a deposit based on your past payment history. I would assume that you WOULD need to pay a deposit after filing.
Good luck!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. -
Unless you can pay the bill before you file, you have no choice but to include the debt. If you pay $600 or more to the same creditor, it may not help if the trustee goes after the utility company for a preference payment.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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Even worse... the creditor then makes you pay a deposit!Originally posted by LadyInTheRed View Post
If you do have issues with the deposit requested, you could request the Court to hear a motion under 11 USC 366 to reduce the deposit. I was going to do one of these motions to set deposit, but the utility and I worked it out!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
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My advice is to include the debt in your bankruptcy, and take your chances with the utility company. Remember that whatever deposit they wish to charge must be considered "reasonable", and the bankruptcy court has final say as to what is "reasonable" or not. Also, remember that the deposit is YOUR money, and will be refunded when you move out and pay the final bill. If you pay the debt, you'll never see that money again.
Also, if you pay the bill within 60 days of filing for bankruptcy, the trustee can "claw back" that money--and the utility company could still make you pay a deposit. If you don't pay the bill, then by law the utility company must write it off when you file, and can only charge you for new charges going forward.
In a nutshell, including the debt in your bankruptcy is almost certainly going to be cheaper than paying it, and will also eliminate a lot of risk and uncertainty over your account status.Comment
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