You are months behind on your gas and electric bill. Your service has been disconnected. You are also behind in your other obligations. Can bankruptcy help?

Bankruptcy can help eliminate money owed on your gas and electric bill and even help you restore service within days!

Utility bills are dischargeable in bankruptcy. This means that if you are eligible to file a chapter 7 you can include your utility bill and remove all personal responsibility to pay on that account.

It is not all You should note that under bankruptcy law a utility company has a right of set-off against your deposit. Set-off means the company can use your deposit to pay your pre-filing balance.

Secondly, a new deposit is required when you file for bankruptcy to keep your service. Under 11 U.S.C. § 366(b), the utility company can cut off your after filing if you do not put down a new deposit. In Maryland the deposit is 10% of your annual usage, but it is subject to negotiation with your utility company.

In conclusion, a bankruptcy filing can get rid of hundreds or thousands in utility bills without losing service or get service restored.

For example, Patricia came to me with over $9,000.00 in utility bills. Unbelievable, right! I was shaking my head too thinking there’s gotta be a giant mistake here. Apparently the utility company was charging her account for an entire apartment floor with at least 3 other apartments. Long story short, her service had been disconnected and the landlord was about to evict Patricia and her disabled daughter over safety concerns. We had a week to stop the eviction. On top of that it was same week as pretty bad storm with outages.

Bottom line, I filed her chapter 7 bankruptcy and in about five days service was restored and she did not have to be evicted. The utility bill was discharged in chapter 7. I could not have been happier for Patricia. No one was more deserving of a fresh start.

Maryland residents looking for bankruptcy advice call me today for a free consultation. Joe Githuku. 410-849-9529.

Disclaimer:
This article is provided for informational purposes only and should not be construed in any way as legal advice. This article does not create an attorney-client relationship.