BIG utility deposit - anyone else?

[Lesa13]

After I filed by BK, my gas company decided to require a deposit. That was fine, since I figured all my utilities would want that - and my attorney told me that was normal process.

Unfortunately, the deposit they want was approx. $1,200 - based on "6 months of your average monthly bill." They would only break this down into 2 payments, on top of my regular gas bill.

I paid about $700 last month and now have to pay another $700 or so dollars by today. Unfortunately the gas company is very difficult to speak to ("average wait time" any time of day you call is 40 min), but I am trying....

I did ask my attorney why the deposit was so high and was it legal to require that big of a deposit and he told me they could ask for "whatever they wanted" and you had to pay it, although most of the utilities were willing to break down the deposit over several months, not just one or two (ie, electric company deposit is $200 broke down over 4 months). Basically "tough luck for you, sis" was his answer.

Just wanted to see if anyone else had this happen and/or any suggestions on waht to do besides beg gas company today to give me at least another few weeks to put together the $700. I mean, I have paid the gas company more in less than one month than I have anyone else! However, I am resigned to living with no hot water and no heat, if I have to, at least for a few weeks.

[Minnymouth]

If you did not maintain current payments on your utilities during the BK process and you were disconnected for non-payment or included a utility in your bankruptcy........YES they can require whatever deposit they want...........

I maintained all of my utilities during my bankruptcy and made sure they stayed current (always have anyways)..... and NONE of my utilities have required a deposit from me since the bankruptcy....

Unfortunately you got caught in a backlash of now having to have deposits on everything....

Hang in there, it will get better.

You didn't say whether your rented or was a homeowner??

[Minnymouth]

You might see if your attorney can contact the utilities and make arrangements for you to pay $100.00 a month extra towards the deposits........

It may help letting him handle it for you...........

[BassBoy]

We were current with our utlities too, and when we had set-up new connections at our new place, there was no deposit......same utility companies too.

Did you fall behind, have a disconnect and then discharge these debts? That would surely require you to pay a deposit and as much as they see fit.

[BassBoy]

Here we go again Minny. You and I staying on top of it.

[Jman30]

If you did not maintain current payments on your utilities during the BK process and you were disconnected for non-payment or included a utility in your bankruptcy........YES they can require whatever deposit they want...........

I maintained all of my utilities during my bankruptcy and made sure they stayed current (always have anyways)..... and NONE of my utilities have required a deposit from me since the bankruptcy....

Unfortunately you got caught in a backlash of now having to have deposits on everything....

Hang in there, it will get better.

You didn't say whether your rented or was a homeowner??

Same with me. All my utilities were current when I filed BK and noone has required any deposit from me at all. In fact, if you think about, if you are current in your utilities and don't owe them back payments, they really don't even know if you are in BK. My electric, cable, phone, water and sewer...they have no idea I am in a BK situation.

[Lesa13]

Unfortunately, my gas specifically has fallen behind mainly because we have one natural gas company in this area who has a monopoly on service and they have jacked their prices up 40-70% in the past 6 months (they even *brag* about they *only* had to raise their prices by 70% "due to the hurricane" when you are on hold for 30 min waiting to talk to them). So yes, I have been behind even before now, so I guess I am paying for that with this monster deposit. It doesn't help that my 90 year old house is *not* the most energy efficient, either.

My attorney is very unhelpful and hard to get hold of about major things so I tend to not want to deal with him unless it is going to be worth my while. He has already given me his answer on this which was basically "tough luck" so I doubt he would be willing to help me any further. I guess I will just have to nicely beg and hope for the best. I keep thinking, wasn't BK supposed to be HELPING me in my financial situation, not making it so I have to live without gas/food/medicine, etc.? Guess not

[Minnymouth]

Sorry to hear your encountering so many problems.....
Yes the gas company's are making it difficult for everyone right now. The cold winter months and high bills. Everybody is feeling the pinch............ and especially just coming out of bankrutpcy.

Once you get things straightened out it will all be better, you'll see.....

You didn't say what state you live in......???

If you are classified as a cold weather state, the gas company CANNOT turn your gas off if you cannot pay them in full IF YOU HAVE CHILDREN IN THE HOME.......
its' against the law....

Suggestion:

Sit down and write your state Public Service Commission a letter. State to them that you have children in the home, and you are presently involved in bankruptcy or just coming out of bankruptcy... Let them know that you have tried working with the local gas company (tell them about the enormous deposit they are requesting) and that you have tried to get it setup on a payment plan ($100.00 additional each month till paid) but you cannot come up with all of it at once plus pay the huge monthly gas bill because of their increase...........

See if they can help you......

Gas companies are public utitilities also and have to follow the same guidelines as the rest of the utitlties do.....

Maybe they can arrange for monthly installments on the deposit till you can get it straightened out...

Let me know what you find out..........

Minny

[StaciMM]

If you included the utility company in your bankruptcy as a creditor, then your story is not unusual. They took a loss-and had to start billing you from the date you filed forward. Requiring a deposit is legal, and they get to set the amount. Is there an office where you can go in person to talk things over and try to work something out?

[alh]

Lesa13

What state are you in?

[SinkingFast]

If it's a private company, such as propane supplier, or a rural electric cooperative, they don't have to follow the Public Utilities rules. They can make their own rules and do what ever they want.

Rural electric cooperatives are "owned" by the people that live in the service area. We were REC in Missouri. REC's don't have to abide by the same rules as public utilities do. That's because, a private company isn't absorbing the losses. The members of the REC are. If you don't pay your electric bill, they can cut you off. Ours did have a "mercy" rule for winter. Our REC would let you have electric in the winter months for heating, once the temps dipped below a certain level, but that was it. Once the weather returned to a certain minimum temp, and maintained it, the REC would cut you off. Our REC wasn't required by law to do that, the members and the Board voted to allow for it.

Now, we're on propane heat. The propane comes from a private supplier. This company won't allow renters to have accounts in their names. They've had too many run off and leave them with outstanding debts. Now, the Landlord must hold the account and be responsible for the bill. If my Landlord doesn't pay the gas company when they bill, we don't get propane. We pay our landlord a set amount each month, like a budget payment, for propane, in addition to our rent payment. Then, at the end of our lease, we'll settle up with the Landlord. Pay extra if we owe more or get a refund if we paid in too much.

I'm glad to learn we'll be OK with the utilities companies in the future. We've stayed current on those with every one of them. Phones included.

Sorry you are having such trouble, Lesa. I cannot imagine having to come up with an extra chunk of change right now for anything. Hopefully, your gas company is governed by the same rules as Public Utilities.

[Lesa13]

I am in Missouri.

After being on hold for 43 min, I finally spoke to a very nice lady who, when I explained the situation to her, told me it should never have happened that the deposit be put into two payments. She said the rule is that "yes, the deposit is normally a very high amount" but that they normally bill it out over 12-18 months. Also, as Minnie referenced, there is some type of "cold weather rule" in place (although it is 70 degrees today, actually), which would prevent them from shutting off the gas completely at this point.

Long story short, I need to pay $360 odd something today and the rest will be billed out with the rest of what is due over a 12 month period. She said she believed it would average out at $282 for the next 12 months and I hope that is something to count on (but I doubt it).

Thanks for the good thoughts everyone. I find myself tending to "shut down" emotionally and bury my head in the sand when I have issues like this that kind of need tenacious follow up - which is probably why I am in the position I am in :>

[edwards2]

I am sorry I am confused...then you did file on the utility company that is now requiring you to pay a deposit because I was wondering how your utility company would know that you filed unless you included them. I can tell you with absolute certainty it would be hard for us to pay those kinds of bills right now.

[Danielle1981]

Well this is a yes and no.....I work for what is considered a utility company and we can require whatever kind of deposit based on credit and it has to be equal all the way around as it would for anyone else in your case....however, because it is a necessity and not a luxury they have to give you ample time to pay....and the only way I know we can be forced to extend that time frame, is to file a complaint with the PUC (Public Utilities Commission). It's a regulated life line service....so they will intervene 99% of the time. I work nationwide, and generally anything over $500 is considered a large amount and we can be told otherwise what to do and how to get that deposit by the PUC that governs the state. Hope that helps.

[Minnymouth]

Even private owned utilities are under some of the laws of the Public Service Commission, just because they are a utility service.....
Hopefully since they worked out a payment schedule for you over the next few months/year it will make it easier on you trying to straighten things out....
REMEMBER - pay on time, otherwise you break your agreement and then PSC will back the utility company and not you.....

Many people are not aware of the PSC and its role in guidelines for the utility companies.