Help! My Utility Payments Are Late

If you’re facing trouble paying your utilities, your options may be limited. While you might qualify for a payment plan or loan with your utility company; that option is often counterproductive when they add in the interest rates to an already delinquent balance. You could also ask a friend or family member to help you out with a loan, but involving others in your financial matters is usually not a good idea.

If you owe back payments on utility services, there is a way to ensure the utility company cannot alter, refuse, or discontinue your service. When you file for bankruptcy, section (11 U.S.C. §366.) of the bankruptcy code prohibits utility companies from shutting off service.

This provision states that “A utility may not shut off water, gas, or heat to a residence, or disconnect an electric utility service, if the utility does not have adequate written assurance that the utility will be paid.” This means that an individual who has filed bankruptcy can be assured that the utility company cannot legally refuse to provide service, just because they’re behind on payments. If you have had your service shut off, please contact your utility company and explain to them your situation and the provisions of the bankruptcy code.

Further, contact one of our Citrus Heights bankruptcy attorneys for more information about how the bankruptcy process can stop disconnection and help you get out of debt for good.