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Blog

Utility help from bankruptcy

Posted on January 20, 2015 by Lauren Lamb

I take it for granted that when I flip a light switch, turn on the faucet or light a burner on my stove that my electric, water and gas will be there for me.  While we’ve all experienced normal interruptions in service after a storm or pipe break, some people live without utilities or don’t know when they will lose them due to their inability to pay the bills.

Sure there are assistance programs like LIHEAP (Low-Income Home Energy Assistance Program) and CAP (Customer Assistance Program) that can help by providing grants to pay your utility bills or limit the amount of the bills based on your income, but sometimes this is not enough.  There are still people who fall behind, because they don’t qualify for these programs or they just don’t provide enough assistance.  Some people have their utility service cut off completely due to their inability to pay the bills and others live shut off notice to shut off notice and only are able to pay the minimum necessary to maintain service, never actually paying off the balance due.
Once people have exhausted the assistance programs, they often don’t know where to turn.  Most people I meet with have no idea that bankruptcy can help get them back on track with their utility bills.
If you have accumulated a large balance on a utility bill, filing for bankruptcy will eliminate the debt or allow you to pay it off over up to five years, depending on the type of bankruptcy that you file.  If your service has already been terminated, filing bankruptcy can clear the way for you to have your service restored.  In some cases, you will have to pay a security deposit to the utility company upon filing for bankruptcy and you will have to pay a re-connection fee if your service has been off.  However, the amount you will have to pay for a security deposit or a re-connection fee is usually very minimal compared to the balance of the utility bill.
If you find yourself fighting against utility bills with a large balance, give Steidl & Steinberg a call.  We have helped thousands of people get their utility bills under control and even restore service by filing for bankruptcy.  Don’t spend this cold winter without heat, water or electric!
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