Unfortunately, you may have fallen into a financially grave time, so much so that you struggle to pay for your basic needs. That is, you may be behind on paying your utility bills, to the point where you receive a posted notice of their impending shutoff (i.e., electricity, water, gas, and telephone). If you cannot live like this anymore, you may seek a Chapter 7 bankruptcy petition to save you. Read on to discover whether an automatic stay can curb utility shutoffs and how a seasoned Rockland County Chapter 7 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can help you obtain such protections.
What is an automatic stay in Chapter 7 bankruptcy?
As soon as you submit your Chapter 7 bankruptcy petition, the New York bankruptcy court may impose an automatic stay. Essentially, an automatic stay is an injunction on all your creditors that prohibits them from conducting any collection activities against you. Such prohibited collection activities include filing lawsuits, garnishing your wages, sending collection letters, making collections calls, repossessing your assets, and most notably, foreclosing on your home. This is arguably the greatest protection you may be offered in your bankruptcy proceedings, as it may allow you to focus on getting back on track financially.
Is it possible for my automatic stay to stop utility shutoffs?
An automatic stay does not necessarily apply to utility shutoffs. However, the bankruptcy code may still hold that your utility company cannot alter, refuse, or discontinue your services once you submit your Chapter 7 bankruptcy petition. What’s more, it states that your utility company cannot shut off or refuse to provide your services simply because you filed for bankruptcy.
Similar to an automatic stay, the curbing of utility shutoffs may happen as soon as you file. However, dissimilar to an automatic stay, you may be expected to take further action to continually curb such activity. That is, within 20 days of your filing date, you may have to provide your utility company with adequate assurance that you will pay your future utility bills. If you fail to do so on time, your utility company may hold the right to shut off your services. With that being said, forms of adequate assurance may include a cash deposit, certificate of deposit, letter of credit, prepayment, or surety bond, among other things.
In the end, your outstanding utility bills may be wiped out as a dischargeable debt after your bankruptcy proceedings. However, this does not mean that adequate assurance is still not required. So if you require immediate legal representation, look no further than a competent Rockland County bankruptcy attorney. Someone at The Law Offices of Allen A. Kolber, Esq., P.C. will be happy to serve you.
