How Chapter 13 Bankruptcy Affects Your Utility Bills

When you file for Chapter 13 bankruptcy, eligible debts will be pulled together in a repayment plan, letting you gradually pay off what you owe in manageable monthly installments. Your utility bills are part of your debt, but you'll also need to keep paying for service.

The Craig Black Law Firm has years of experience with Chapter 13 bankruptcy and can help you know exactly what to expect. When you call my office, I pick up the phone and speak to you personally. If you're considering Chapter 13, call me at 678-888-1778 or fill out my confidential contact form.

Utility Bills as Unsecured Debt

The good news about utility bills is that they're considered unsecured debt. That means you don't have to worry about a creditor repossessing your car or foreclosing on your home because you used it as collateral.

But that doesn't mean you won't have to pay. Any past-due utility bills will be combined with other unsecured debts like credit cards and medical bills. You'll make payments on that past-due debt under the terms of the plan.

Automatic Stays and Utility Bills

When you file for Chapter 13 bankruptcy, the court will issue an automatic stay. This will stop creditors from contacting you. If you owe money to the water or electric company, they not only won't be able to spam your inbox or fill up your voicemail, but they also won't be able to cut off your utilities once the stay is in place.

There's a catch to that, though. Some utility providers may require you to pay a deposit to continue to receive service. You'll also need to make on-time payments without fail to avoid utilities being shut off for nonpayment.

What Happens at the End of Chapter 13?

While your past-due utility bills will be part of your repayment plan, you may not pay off the full balance during the three- to five-year repayment period assigned to your case.

The court will discharge any debts remaining at the end of your repayment plan, provided you've continued to follow the terms of the plan. That means the remaining balance of your debts, including past-due utility bills, will be discharged, freeing you to make on-time payments moving forward.

How I Can Help

The Craig Black Law Firm knows the ins and outs of bankruptcy law and can help you understand what to expect. If you have questions, you don't have to continue to wonder. I'll let you know exactly what you can expect when you file.

If you're struggling with debt and considering Chapter 13 bankruptcy, talking to a qualified bankruptcy attorney can help. At the Craig Black Law Firm, helping you understand how your debts will be handled is my top priority. Give me a call at 678-888-1778 or fill out this confidential form to talk to me about your situation.