As soon as you file for bankruptcy, your creditors must turn your utilities back on.
Your lawyer should call them for you and make sure they restore service.
If the utility company is threatening to shut off your utilities, then a bankruptcy can also make them stop the cutoff process.
You will have your utilities restored after bankruptcy, and your bankruptcy will also discharge the debts owed to the utility company, so you don’t have to catch up with your payments.
What are the downsides of filing bankruptcy on utility debts?
- The downside of filing a bankruptcy on utility debts is that the power or gas company can charge you a deposit in the future
The size of the deposit is dependent on how much your average bills are, but is usually somewhere between $200 and $300, but you will get the deposit back if / when when you move.
Minnesota Cold Weather Rule
Furthermore, if you live here in Minnesota, remember that you can use the “Cold Weather Rule” to keep the gas on (or electricity, if your house uses electricity for heat).
This rule:
- Only works between October 15 and April 15
- Only applies to people who make less than 50% of the median income for a family of their size in the state
For more information on whether you qualify for the cold weather rule, visit the MN public utility commission’s website.
Conclusion
If you’re struggling to pay your utilities and your utility company is threatening to cut you off, then filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy can help.
Simply Contact Us at 612.824.4357 and tell us what you need us to do for you.
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