How to prevent termination of utilities?

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Utility Bills and Bankruptcy

Sometimes, there are things more important than your favorite car or even a farmhouse during a bankruptcy that you may have to worry about. Not having electricity for heater or air conditioner during winter or summer can be a more serious issue. Most bankruptcy solutions do not address how to tackle the basic utility expenses. Under the bankruptcy law, utilities are also regarded as a priority and are monitored or addressed very cautiously. There is very little time to delay or postpone the dues due to utilities. Not having water or electricity can certainly be life-threatening. The average time to pay out water or electricity is about 19-20 days once it is due. If the payment is not cleared in 19 days, a notice is issued to the individual with a maximum extension of 15 days before the supplies are cut.

It is not an easy process to re-establish the water or electricity supply or any other basic utility supply once it has been cut due to non-payment of dues. The service providers may levy a hefty penalty and might also require a security deposit before restoring the services. The penalty or fee charged for restoring the service is also described as reinstatement fee. These fines and deposits could prove very expensive especially when you are bankrupt. Utilities are something which is not optional but is basic.

How to prevent termination of utilities?

If you can pay your utility bills as the first priority as and when it is generated, that could be the best alternative. If not, you need to make immediate requests and arrangements with your service provider in order to retain your utilities. Most service providers based on goodwill and some other considerations can offer an extra grace period if the provider is kept regularly informed about the delay and estimate due to clearing status. If the financial crunch seems to last longer and if you think you might not be able to pay the utility bill, you must immediately try and sort a payment plan with the service provider. Some providers offer amortization plans and flexible payout only when the financial crunch is communicated well in advance to the provider.

If you do not connect with your provider and your services get disconnected, the consequences could be costly, time-consuming and tedious. You would not like to be experiencing the same. Certain states like California offer some assistance programs for people based on their income level to subsidize or support the utility payments. California Alternate Rates for Energy is one such program that provides a substantial discount of up to 20% on natural gas, water, and electricity bills. You might want to check all info about the programs in every city may be Dallas, San Antonio, Los Angeles or elsewhere. Log on to Recovery Law Group to know more about the programs and your rights.

Declaring bankruptcy shields your utility services

The bankruptcy laws help to prevent utility companies in disconnecting your utility services. To avail automatic stay with respect to utility bill liabilities, one has to apply for bankruptcy before the services have been disconnected. No matter, if the dues are not paid for a considerable amount of time and you have received threats for connection cuts until your connection has been cut, you are eligible for the automatic stay protection that keeps even the utility companies in the bay from the collection and supply disconnection threats. However, no matter if being an individual you file bankruptcy through Chapter 7 or Chapter 13, you need to assure the utility companies for payment of dues in not more than 20 days. This tenure is 30 days for businesses who could file bankruptcy under Chapter 11.

The utility companies might need assurance to grant you the 20-day or 30-day extension after you file bankruptcy. The request might be only if you are looking to release/discharge your utility bill payments or have defaulted more than one recent due. If you are current with your utility payments and are not looking to release the utility payments as forgiven debts, there usually isn’t any objection from the utility companies. When you are making attempts and have the intent to pay off the utility debts, there usually is no problem.

Make a wise call at the right time

With respect to utility bills, you just cannot be on the wrong foot. Communication with your water, heat, power suppliers is so very essential. Keeping up with the utility bill payments is also so very important. If you are in a hard situation and do not know how to manage bankruptcy, utility bill payment dues, and other aspects, solution/help is just a call away 888-297-6203.