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.
Nicholas Ortiz, Boston Bankruptcy Attorney
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