Bankruptcy
Can Stops Utility Shutoffs
There is a growing concern about the health and welfare of many Michigan residents struggling with a severe debt. The fear is that individuals and families that have fallen behind on their payments will have their utilities shut off during Michigan’s drastically cold winter. Recently, Gannett News Service reported that natural gas and electric shutoffs in many states have risen by least 15 percent compared to last year. Having your utilities shut off is not just an inconvenience, it can have devastating effects. Every year we hear more and more stories about people using alternative sources to heat their homes that result in house fires and death by asphyxiation. Many families with young children fear that their children will be removed from their home by the state and placed in foster care, if their utilities are shut off.
If you are having difficulty paying your utility bills and are concerned about the utility companies shutting off your water, gas and electricity you need to contact an experienced bankruptcy attorney. The law firm of Bowser and Associate will set up a free consultation to discuss your debt relief options and explain how bankruptcy will prevent the utility companies from shutting off your service.
Filing for Chapter 7 or Chapter 13 bankruptcy will not cause your utilities to be shut off. Utility bills that are past due at the time of a Chapter 7 bankruptcy filling can be discharged or “liquidated” completely, similarly to other forms of unsecured debt like medical bills and credit cards. If you have a regular source of income, you may be able to discharge all or some overdue utility bills as part of a debt reorganization payment plan implemented under Chapter 13 bankruptcy.
If your utilities have already been turned off, filing bankruptcy will force the utility companies to reinstate your service. However, utility companies may require you to pay a small deposit in order to continue your service. Usually, you will have 20 days to pay this deposit to the utility company. Failure to pay this deposit in the allotted time can result in shut off. This deposit is not used to pay past due balances, it is only used as a credit. You, of course, will be responsible for paying all of your utility bills after your bankruptcy filing date. Once you have proven your ability to stay current on your bills, your deposit can be returned to you.
The experienced attorneys at Bowser and Associated specialize in Bankruptcy law can answer all of your questions concerning debt relief and the prevention of utility shut offs. Overdue utility bills are not the primary reason a person considers filling bankruptcy. Usually, you have other forms of considerable debt, such as medical bills and credit cards that warrant filling Bankruptcy. It is important to seek the professional help of a credit counselor and a Law firm that specializes in bankruptcy, before you receive shut off notices. The law firm of Bowser and Associates has been providing individuals, families and business
owners in St. Clair, Macomb, Oakland and Wayne counties with debt relief assistance for the past twenty years. If you are interested in a free
consultation with and knowledgeable and highly skilled bankruptcy attorney, please contact Bowser and Associates.