David Garner
Americans are still feeling the devastating effects of COVID-19. Like many people, you may be drowning in debt after losing your job, dealing with health emergencies, and other financial issues made worse by the pandemic. Right now, you may be thinking of filing for Chapter 7 bankruptcy in Raleigh for relief.
Americans are still feeling the devastating effects of COVID-19. Like many people, you may be drowning in debt after losing your job, dealing with health emergencies, and other financial issues made worse by the pandemic. Right now, you may be thinking of filing for Chapter 7 bankruptcy in Raleigh for relief. Chapter 7 can help you get back on your feet by wiping out many of your debts. But here at Weik Law, understand that thinking about your financial health is difficult when you’re worried about keeping the lights on. Have you fallen behind on your utility bills? We have some good news for you. Filing for Bankruptcy Helps Prevent a Utility Shut-Off Section 366 (a) of the Bankruptcy Code specifically addresses this situation. It states that “utility may not alter, refuse or discontinue service” to an individual who files for bankruptcy. It’s a lot like the automatic stay, which completely stops all collection efforts against you. Section 366 kicks in immediately after you officially file. The code goes a step further. Utility companies are also prohibited from shutting off your electricity, gas, and water service even when you owe past due bills accumulated before filing. They cannot refuse or alter the terms of your service. This gives you well-deserved breathing room while you figure out your next steps. Be Aware of the 20-Day Window As we mentioned above, Section 366 gives you more time, but it does not last forever. You have 20 days after filing to provide “adequate assurance” to your utility company. This is quite literally an assurance that you will pay future utility bills. Failure to comply will allow the utility company to terminate services. If you’re able to provide adequate assurance, they’re legally required to continue service even after Chapter 7 bankruptcy in Raleigh has wiped out all of your outstanding payments. Taking Action Before the 20-Day Window Closes To prevent a utility shut-off, the utility company has to agree that your assurance is adequate. You can also ask the court to order the company to accept your payment assurance. What are the acceptable ways to provide adequate assurance? As our bankruptcy lawyers in Raleigh will explain to you during our consultation, adequate assurance can take several forms: · Prepayments· Credit· Certificate of deposit· Cash deposit· Surety bonds· Etc. What utility companies will accept as adequate assurance varies. We’ll be happy to help you understand the specific guidelines for North Carolina during our discussion. What happens to your utility bills after filing for Chapter 7? After Chapter 7 wipes out your debts, you have to regularly pay your utility bills. Bankruptcy only eliminates past debts, not discharge future or current payments. They can legally terminate their service if you continue to fall behind on your bills. Keeping the Lights on Through Bankruptcy If you’re concerned about losing power, water, or gas due to past due utility payments, you need to explore your options with bankruptcy lawyers in Raleigh, NC ASAP. Call Weik Law Office today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.
Here at Weik Law Office, we understand that no two cases are exactly alike, which is why we work closely with each client and create a customized plan that will help them resolve their current fina...
