If I File for Bankruptcy in New York City, Will They Turn the Power Back on?

Some financial problems are easier to ignore than others, but when the heat and lights get turned most people start thinking about their debt relief options in New York City. One of the most common questions we hear from clients during our free consultations is about having utility services reconnected if they decide to file bankruptcy. The good news for most clients is you can not only have your services turned back on, you can also entirely eliminate the past due bills that led to the shut off in the first place. This includes electricity, gas, water and even telephone and internet services. While unpaid utility bills alone rarely justify filing bankruptcy, they are usually a symptom of bigger financial difficulties. Having your services turned back on is one of the easiest things to accomplish in bankruptcy and really just the beginning to the relief and fresh start bankruptcy provides.

Bankruptcy law gives debtors stronger protection from utility companies than from other types of unsecured creditors. Unlike a credit card company or auto lender, your utility provider cannot restrict current services because you had a debt discharged with them in a bankruptcy. Another utility company may not refuse you future service simply because you filed bankruptcy in the past either. The utility companies will have to accept your future payments even though the overdue payments will have been discharged. They will also be forbidden from ever coming after you for the discharged debt.

After filing bankruptcy you may need to give the utility company a deposit as “adequate assurance” within 20 days. This is just payment towards the next month, not payment for past bills. If you can keep making the payments moving forward the utility companies will be forced to forgive the debts from the past. There could also be a small reconnection fee, but paying for this and for the deposit will be made much easier by the fact that you will be gaining relief from all of your other debts as well.

If your power has been shut off already you are probably a good candidate for bankruptcy protection. There are some consequences to bankruptcy, but it is a right and privilege that gives Americans a fresh start on their debts that is not available in every country. It won’t hurt to take a little time to get the free advice you need from an professional skilled in helping people with their debts under the US Bankruptcy Code. If you live in New York City contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free consultation today. We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 8/31/16.

**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.