Utilities in Bankruptcy

Often times, individuals contemplating bankruptcy may have fallen behind on their gas, electric or other utility payments.  One of the benefits of bankruptcy is that filing can keep the company from discontinuing your service; however, there is one drawback that people do not immediately consider.  Upon the filing of your case, your utility company must close your current account with them as they are no longer permitted to collect on that account due to the bankruptcy stay.  They must then open you a new account in order to continue providing you with service.  The good news is that any balance owed on the old account will be discharged with the rest of your unsecured debt.  The bad news, however, is that in order for the utility company to open you the new account, they will require that you pay a security deposit.  This is often times an added expense that individuals do not account for when they are preparing to file for bankruptcy.  One company that consistently uses this method of closing your old account, opening a new one, and charging a security deposit is Duquesne Light, but don’t be surprised if you receive similar notices from your other utility companies upon the filing of your case.  In short, when you are trying to determine the cost of your bankruptcy case, don’t forget to account for some additional expenses caused by the need to pay these security deposits to maintain your utility services.  For more information on costs associated with bankruptcy, contact the Law Office of Suzanne Szymoniak today.

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One response to “Utilities in Bankruptcy

  1. Pingback: Terminating Utility Service for Failure to Pay Post-Petition Charges Not a Violation of the Stay | Law Office of Suzanne Szymoniak

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