What About Debts To Utility Companies, Can Those Be Discharged By Bankruptcy Filings?

Public utilities, such as water, gas, and the electric company, are not permitted to cut off service in the event of a bankruptcy filing. Instead, if there are utility bills included in the bankruptcy filing, the utility company has the right to demand a debtor pay a deposit within twenty days to ensure service remains uninterrupted. Because the requested deposit can sometimes be several times the amount of the unpaid bill, it oftentimes is advantageous to the debtor to pay the bill instead. Billing for utility services that arise after the filing of the bankruptcy are not automatically included in the filing and must be paid.

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