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Utility Service Shut-off?

The U.S. Bankruptcy laws provide the most important source of consumer rights to deal with utility shut-offs and the unwillingness of utility companies to help customers arrange to pay off past bills. The following benefits are available to you If you file for bankruptcy and you owe money to the utility service providers:

1. The automatic stay provision of the Bankruptcy Code will prevent each utility company from terminating service.
2. The utility company will not be allowed to collect any amount past due until the automatic stay is lifted.
3. Debts owed to each utility provider from unpaid utility bills are usually eliminated in bankruptcy.  As a result, bankruptcy filers will have a fresh start in dealing with their utility providers.
4. Utility service which has been shut-off must be immediately restored, at least for 20 days.  To keep utility service beyond 20 days after the bankruptcy filing, you must provide a security deposit or other security for future payments and keep current on the new utility charges.  Some utilities may not take a deposit, but you should offer to provide one.
5. If a utility provider obtained a lien on your home or other property to secure a past due amount, bankruptcy provides a way to eliminate this lien.