Utilities and Insurance after BK???

[skyan]

Hi. We are still deciding if BK will be best in our case or not. But while I am considering all the pros and cons, a thought occurred to me. Do utility companies charge a deposit after you file BK and threaten to disconnect if you don't pay one? And what about insurance? Do they raise your rates after you file? I have a friend who filed in the last year and she claims that her auto insurance almost doubled when she filed. And I seem to remember hearing utility companies will charge a deposit if you want to keep service with them. We are in MO if that helps.

Thanks.

[FloridaGirl]

Yes, insurance can go up. Back when my credit first began to go bad, my insurance rates went up. Then, in my last billing policy, my rates went back down. Now that I have a BK they will probably go back up. I don't know what your credit has to do with paying car insurance. I guess they think folks will wreck purposely to get money to pay off bills. I dunno.

[HHM]

Yes, insurance will likely increase, but its usually not a huge increase, and yes, utilities may require a deposit to extend or continue service.

[skyan]

Thanks. Does anyone know how much they can legally go up? I mean, my girlfriend said hers went up almost double. And with the utilities.... do they put those payments into your mothly bills or do they make you pay it all at one time?

Thanks.

[HHM]

With utilities, it is a security deposit. (like a security deposit on an apartment). You are still expected to pay the monthly bill in full. Once you discontinue the service, you get the deposit back, (or its applied to any outstanding bill).

[HRx]

Some states, e.g. Massachusetts are not allowed to based insurance rates on ones credit standing. But according to a article I read in the WSJ, more, and more insurance carriers are going to start using credit scores, as one of many components to determine ones premium.

[mymymy]

Ugh.. that is just total and utter BullCrap! The insurance industry already runs this country.. don't get me started..LOL. ANYTHING to raise premiums and lower coverage. My doctors can't go the restroom without clearance. Credit scores should have nothing to do with it.. history on continuance coverage, no claims and a solid payment history is by far a better guage, don't cha think? Grrrrr.

[HRx]

Ugh.. that is just total and utter BullCrap! The insurance industry already runs this country.. don't get me started..LOL. ANYTHING to raise premiums and lower coverage. My doctors can't go the restroom without clearance. Credit scores should have nothing to do with it.. history on continuance coverage, no claims and a solid payment history is by far a better guage, don't cha think? Grrrrr.

The article stated that thier research indicates that individuals with derogatory credit, have a greater likilhood of filing false claims.

[Teri]

I don't really understand the concept here. If you are in good standing with your utilities and your insurance, how would they even know that you filed BK?

[skyan]

Well, I don't know about the utility companies, but insurance companies do look at your credit periodically. When the look, they would see the BK, and they'd then know...
I guess you just get lucky if they don't pull it around the time you file.