How are utility bills affected by bankruptcy?

On Behalf of | Jan 23, 2024 | Bankruptcy

If your debts have gotten out of hand, filing for bankruptcy may be a fresh start for you. Frequent calls from creditors can make the stress of your existing debt-related challenges worse. Filing for bankruptcy triggers an automatic stay, which immediately halts these calls.

Perhaps you’re concerned about what to do about your past-due utility payments. A list of all of your debts will be required when you apply for bankruptcy. Unpaid utility bills should be included on this list.

Will my utility services be restored after a bankruptcy?

In general, yes, it’s possible for your utility service to be reinstated after bankruptcy. Assuming that your utilities were turned off, some (but not all) providers could ask for a payment before restoring your service. They may ask you for this even if you paid a deposit when you originally started using their services.

With that said although utility providers may not disclose this, they have the ability to discharge any past due amount without disrupting your service. This means that after filing for bankruptcy, your service should be activated again. They may end up creating new accounts for you, allowing you to start fresh with them. Going forward, it’s important to ensure that you make timely payments each month to avoid any future disruptions to your service.

Don’t go through bankruptcy alone

Filing for bankruptcy can be intimidating and overwhelming. Complications are inevitable, and you might not know how to deal with them. That’s why it is important for you to seek assistance with the process. Finding the right guidance is crucial when you are facing the many decisions that come with declaring bankruptcy.