How Bankruptcy Prevents Utility Shutoff and Restores Service
Released
on: November 6, 2008, 9:11 am
Press Release Author: Robert Manchel
Industry:
Law
Press
Release Summary: The bankruptcy laws require the utility company
to restore the service of any utility that was terminated prior
to the filing. A bankruptcy filing prevents the utility company
from terminating an individual’s service.
Press
Release Body: Immediately upon the filing of a bankruptcy petition,
no creditor may pursue or commence an action against the debtor
(person filing the petition). It’s the law. Therefore, after
the filing, a utility company may not terminate the debtor’s
service, even though there may be substantial arrears. Also, in
the event that the debtor’s service was terminated prior
to the filing, the service must be restored, upon notifying the
utility provider after the filing. Generally, the provider will
restore the service within 24 to 48 hours after the filing.
New
Jersey residents can obtain answers to questions regarding foreclosure
resolution and bankruptcy laws by visiting http://www.bankruptcylawyer-nj.com
The
bankruptcy code states that within 20 days after the filing, the
debtor must pay a security deposit to establish a new account.
Each utility company may apply a different criteria in determining
the deposit amount. The utility companies generally apply the
following criteria to determine the amount of the security deposit:
1. average monthly usage for the 12 months prior
to the filing; 2. average of the highest two
months of usage during the 12 months prior to the filing; 3.
twice the average monthly usage for the 12 months prior to the
filing.
Is
the debtor required to pay the pre-bankruptcy debt owed to the
utility provider? If the debtor has filed for chapter 7 bankruptcy
protection and meets all of the requirements for a discharge,
the debt is eliminated without any payment. After a debtor has
established a new account, subsequent to a chapter 7 discharge,
the utility company may terminate the service for payment arrears,
based on their typical standards.
New
Jersey residents can obtain answers to questions regarding foreclosure
resolution and bankruptcy laws by visiting http://www.bankruptcylawyer-nj.com
The
following pertains to chapter 13 protection. An individual may
file a chapter 13 case for numerous reasons that are unrelated
to utility issues. A chapter 13 typically requires the debtor
to make monthly payments to a trustee (bankruptcy administrator)
over a 36 to 60 month period. The trustee payments may be paid
to various creditors based on the debtor’s financial position
and desires. Utility debt is classified as unsecured. The debtor
may be required to pay none, some, or all of their unsecured debt,
based on the following factors: personal and household income;
personal and household expenses; real and personal property values;
amount of arrears on secured debt; and, to some extent, the debtor’s
desires. A chapter 13 may permit the debtor to eliminate the entire
utility balance, without payment.
Similar
to a chapter 7, in the event that a debtor falls behind with the
utility payments after the chapter 13 filing and the establishment
of a new account, the company may terminate the service, based
on their typical standards relating to payment default.
For
more information on bankruptcy laws in New Jersey, visit
http://www.bankruptcylawyer-nj.com
Robert Manchel is a New Jersey, Board Certified
Consumer Bankruptcy Attorney, whose practice is limited to foreclosure
resolution and bankruptcy law. For more information, please contact
Mr. Manchel at (856) 797-1500, 1(866) –503-5655 or go to
his web site at http://www.bankruptcylawyer-nj.com
Robert
Manchel handles cases from the following counties: Cumberland,
Atlantic, Salem, Gloucester, Camden, Burlington, Hunterdon, Somerset,
Middlesex, Ocean, Mercer, Monmouth, and Philadelphia.
Robert
Manchel
The Law Offices of Robert Manchel
1(866) –503-5655
rmanchel@aol.com
http://www.bankruptcylawyer-nj.com
Disclaimer:
The bankruptcy laws are complex and may be applied differently,
in each case, and State. There may be numerous exceptions and
variations for each law and rule. Do not rely on the information
provided in this article. If you are considering filing for bankruptcy
protection or have foreclosure issues, you should consult with
an experienced lawyer. We are a debt relief agency. We Help people
file for bankruptcy relief under the bankruptcy code.
©
2008 Robert Manchel
Web
Site: http://www.bankruptcylawyer-nj.com
Contact
Details: The Law Offices of Robert Manchel
1-866-503-5655
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