Home utilities play a very prominent role in day to day life. They provide us with the power to heat and cool our homes, cook and refrigerate our food, and power the devices that we used to stay connected with both our loved ones and the world at large. In short, utilities are fundamental to providing for our families and protecting our homes. Unfortunately, utilities can also sometimes be a heavy burden on our budgets, something which has become increasingly true in light of rising energy prices. This can in turn cause us to sometimes fall behind on utility bills, as we seek to balance their cost alongside other daily bills and the necessary expenses of living.
The good news is this: bankruptcy can be a resource to help. First and foremost, any debt that is owed on a utility is generally unsecured, meaning that it can be wiped out through the bankruptcy discharge. For any old bills owed to utility providers that you no longer work with, this means that the utility debt goes away forever as soon as the discharge occurs! On the other hand, If the bill is owed to a utility provider who is still providing service to your home, the debt will still be dischargeable, but the utility company can request a deposit to continue service. However, this deposit is refundable, and will eventually be returned by the utility company assuming that ongoing utility bills are paid on time.
Additionally, bankruptcy can help prevent a utility shutoff! Even if utilities have already been shut off, bankruptcy can still help to get them turned back on! As soon as the bankruptcy is filed, our firm sends notice to the utility provider right away, so that they are made aware of the filing and are provided with immediate notice to restore the utility service. The utility company can request the previously mentioned deposit in this situation, but they are still required to turn the utilities back on.
Bankruptcy can also help us with future utility bills by eliminating other debts that you might be struggling with and giving you more room in your budgets to pay these ongoing bills as you progress forward out of the bankruptcy. This means that even if energy costs don’t go down in the near future, you will still be in a much better position to deal with them once the bankruptcy is concluded and your discharge takes place.
Bankruptcy is a powerful resource, and it is one that you can leverage in a variety of different ways to help protect your home and your family. If your utility provider is threatening a shutoff, or if your utilities have been turned off and you are looking for resources to help restore them, please give us a call!
CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
We are here to help, and we are ready to advocate for you to make sure that you, your family and your home are protected. When the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to www.lifebacklaw.com.
