Utility Bills in Bankruptcy - Deposits, Shutoffs, and Discharge

Utility Bills in Bankruptcy

Section 366 of the Bankruptcy Code governs utility service during bankruptcy:

• No shutoff for 20 days: After filing, utility companies cannot terminate service for pre-petition nonpayment for at least 20 days.
• Adequate assurance deposit: The utility may require a deposit (adequate assurance of payment) within 20 days. This is typically one to two months of service.
• Pre-petition balance discharged: Utility bills incurred before filing are treated as unsecured claims and are dischargeable.
• Post-petition bills: You must keep current on utility bills after filing. Failure to pay post-petition utility bills is grounds for service termination.