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Easy Ways to Pinch Your Pennies and ...
08/04/2010
If your income falls short of your expenses at the end of each month, your budget needs to change—either by adding more income or ... » read more

Is Your Economy Improving?
04/28/2010
When your credit card statement shows that minimum monthly payments will repay your loan in 80 years, you should consider your options. » read more

Will I lose my house if I file ...
04/08/2010
So long as you remain current on your mortgage the bank will not take your home.  You also need to stay current with your second mortgage, ... » read more

Careful with Those Retirement Savings!
04/05/2010
If you’re thinking about dipping into your retirement accounts to pay off your credit cards, think again. Even if your lenders agree to ... » read more

 

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.