What Happens to My Utility Debts in a Bankruptcy?

What Happens to My Utility Debts in a Bankruptcy?

When you are facing financial difficulties, you can quickly fall behind on your bills, which likely includes your various utility bills. This can be particularly worrisome as unpaid utility bills can result in those utilities being turned off. As these debts pile up, you may be wondering if it is possible to reach financial stability again. One option to consider in this situation is filing an Atlanta bankruptcy.

Though bankruptcy can have a negative stigma, it can actually be a responsible financial choice if you have found yourself in overwhelming debt. It is not about how you got there, but rather how you can change your financial situation so you can have a fresh start and move toward a more stable financial future. Depending on what type of Bankruptcy you file, debts such as your past utility bills—whether it’s for cable, water, gas, power, or internet—can be eliminated or incorporated into a debt repayment plan.

Utility Bills in a Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is designed to help you get out of debt by selling your assets to repay your creditors. Any unsecured debts (debt that is not tied to property or an asset) that are not a priority are generally discharged. Utility debts fall into this category. This means, at the end of the bankruptcy utility debts will be discharged or eliminated.

Utility Bills in a Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, instead of surrendering your assets to repay debt, you create a 3-5 year debt repayment plan to get out of debt. In this payment plan, unsecured debts, which includes your unpaid utility bills, are combined together. Instead of worrying about paying back each individual utility creditor, you will make one monthly payment and a portion of that payment goes to paying back the lump sum of unsecured debt.

Staying Current on Your Utility Bills

No matter which type of bankruptcy you choose, you will need to continue paying your utility bills after you file. Bankruptcy will take care of any unpaid bills up until your filing date, but bankruptcy does not cover utility bills received after the filing date. Thus you are responsible for future bills. If you don’t want anything to happen to your utilities, such as having your power, water, or internet shut off, make sure you stay current on your utility bills.

Discuss Your Bankruptcy Options with a Skilled Bankruptcy Attorney

If you are behind on your monthly bills, and utility payments and other debts are piling up, it may be time to speak with anĀ experienced Atlanta bankruptcy attorney. At the Ballard Law Group, our attorneys are ready and willing to meet with you during a free case consultation. We can answer any questions you have about bankruptcy, discuss how bankruptcy can help your current financial situation, and help you understand which type of bankruptcy is right for you. Don’t let your worry about unpaid bills become overwhelming—give us a call today at (404) 800-9939 to schedule your consultation and get started on your path to a better financial future.

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