Can Bankruptcy Stop Utility Shutoffs?
Many people throughout Florence and the State of South Carolina are feeling the growing economic pinch, which is based on the rising cost of living and stagnant wages. This can translate to serious financial concerns that include the possibility of having your utilities shut down, which can have lasting repercussions for your family. Filing for bankruptcy, however, implements an automatic stay that can afford you the time and financial relief you need to resolve the matter. Bankruptcy can help you manage your overwhelming financial concerns, and our experienced Florence bankruptcy attorneys at Reed Law Firm, P.A., are on your side.
The Automatic Stay
When you file for bankruptcy in South Carolina, an automatic stay is implemented. This is a legal injunction, and it puts an end to most collection practices during your bankruptcy proceedings. In addition, it also blocks utilities from being shut off, which can help you avoid turmoil at home.
Upon your initial filing for either Chapter 7 or Chapter 13 bankruptcy, the stay will last for 20 days regarding your utilities. It applies to all the following:
- Water
- Gas
- Electricity
- Phone, both landline and mobile
These play a key role in how your home and family function, and the stay associated with bankruptcy can make a big difference. It is important to note that time is of the essence, so reach out for skilled legal guidance today.
Important Considerations
There are several important considerations to keep in mind in relation to bankruptcy and your utilities.
If Your Utilities Have Already Been Disconnected
If your utility services have already been disconnected, filing for bankruptcy is unlikely to trigger their automatic reconnection. Working out a payment plan for your outstanding balance will very likely be required, and a knowledgeable bankruptcy lawyer can help.
Only Outstanding Bills Are Covered
The stay on your utilities only applies to those bills accrued prior to your bankruptcy filing. This means you will be responsible for paying for your utilities in full moving forward. You may, however, have options, such as setting up a payment plan that averages your monthly bills across the year or paying reduced rates, if you qualify.
The Kind of Bankruptcy You File For
Chapter 7 bankruptcy is a liquidation process, which means that most unsecured debts can be wiped out. Because utility bills are unsecured debt, your arrears can be fully discharged. Chapter 13 bankruptcy, on the other hand, amounts to a financial restructuring. As a result, a portion of your outstanding utility bills is likely to be incorporated in your repayment plan.
It’s Time to Consult with Our Experienced Florence Bankruptcy Lawyers
Our capable Florence bankruptcy attorneys at Reed Law Firm, serving clients throughout South Carolina, will leave no stone unturned in our focused efforts to stop your utilities from being turned off and to revitalize your finances in the process. Learn more by contacting us online or giving our firm a call at 843-679-0077 today.
