Bankruptcy and Utility Shut-off

30 Sep Bankruptcy and Utility Shut-off

Automatic stay prevents utility companies from shutting off bankruptcy debtors’ utility services on the basis of outstanding debts owed prior to the bankruptcy filing.

If a debtor’s utilities have been shut-off prior to the bankruptcy, the debtor, upon the filing of her case, should provide evidence of the bankruptcy proceeding to the company and demand that her utilities be turned back on. By law the utility company must turn the debtor’s utilities back on. In some cases before doing so, companies may require bankruptcy debtors to submit an initial deposit.

However, things are different for utility bills that come due after a bankruptcy case. A utility provider generally can terminate service for nonpayment of post-petition utility bills.

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Nicholas Ortiz, Boston Bankruptcy Attorney

From Attorney Ortiz: We have been helping consumers and small businesses in Massachusetts successfully navigate through the bankruptcy process since 2002. We offer free initial consultations and payment plans. Call us at 617-716-0282 to discuss your debt relief options. Mention the Bankruptcy Law Network when you call!
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