🔌 Power Shut Off in New York? What Happens When You File Bankruptcy

If Con Edison, National Grid, or another New York utility company has disconnected your power due to unpaid bills, and you then file for bankruptcy, you may wonder: Can they keep your power off?

The answer is no—at least not immediately. Bankruptcy law protects your right to essential services like electricity, gas, and water, even if you’re behind on payments. But it also gives utility companies certain rights.

Let’s break down what utility companies must do when you file for bankruptcy, what protections you gain, and what happens next.

⚖️ What the Law Says: 11 U.S.C. § 366

Under Section 366 of the Bankruptcy Code, utility providers cannot shut off or refuse to restore service solely because you:

  • Filed for bankruptcy, or

  • Owe pre-bankruptcy utility bills

This means if your service was already shut off, you may be entitled to get it restored—but you’ll need to act fast.

📅 The 20-Day Rule: Utility Protections Under § 366(b)

Once your bankruptcy is filed:

  • Utilities must maintain or restore service immediately

  • You must provide “adequate assurance of payment” (like a small deposit) within 20 days

  • If you don’t, they can legally disconnect service again after the 20-day window

The amount and form of “adequate assurance” depends on your situation and what the court considers fair. It may be a cash deposit, letter of credit, or another form of guarantee.

🏛️ Key Court Cases: Your Rights in Action

✅ In re Stewart (2018)

The utility shut off service after the debtor filed for bankruptcy, and refused to restore it—even after being told of the filing.
Result: The court found the utility willfully violated the automatic stay and ordered immediate reconnection.

✅ In re 499 W. Warren Street (1991)

The court confirmed that even if you’re current on post-filing bills, the utility can still require a deposit.
Key takeaway: Filing alone doesn’t erase future payment obligations—but it does pause collection of old bills.

❌ Veals v. Consolidated Edison (1982)

Con Edison terminated service despite acknowledging that the customer had already paid the bill.
Result: The court found gross negligence and awarded damages.

🔄 What Con Edison and Other Utilities Must Do

If your service was shut off before bankruptcy was filed, the utility must:

  1. Promptly restore service once notified of the bankruptcy (if the debt was pre-petition)

  2. Allow you 20 days to provide adequate assurance

  3. Not condition reconnection on full payment of old bills

If they refuse to restore service or demand pre-bankruptcy payment, it may violate both the automatic stay (§ 362) and utility protection laws (§ 366).

🧾 What Is “Adequate Assurance of Payment”?

Examples may include:

  • A cash deposit (typically one or two months of average usage)

  • A guarantee from a third party

  • A letter of credit or surety bond

If you can’t afford the deposit, your attorney can ask the court to set a lower amount or approve an alternative.

🗽 New York-Specific Law

Under NY CLS Pub Ser § 46, utilities in New York must restore service unless a public health or safety risk exists.

⚠️ What You Should Do If Your Power Is Off

  1. File your bankruptcy case and notify the utility immediately

  2. Provide a copy of your petition and ask for restoration

  3. The utility provider will usually request a deposit for continued service.

  4. Contact your attorney if the utility refuses to comply

💡 Need Help Getting Your Power Back?

If you’re struggling with utility shutoffs in New York—especially by Con Edison—after filing bankruptcy, we can help you assert your rights and restore essential services fast.

📍 Our firm has helped hundreds of NYC and Westchester residents stop utility harassment and rebuild their finances.

📞 Call (212) 244-2882 or
👉 Schedule a free consultation

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