Michigan’s cold weather is approaching fast and many residents struggling with sever debt are concerned about their utilities being shut off. If you are having difficulty paying for your water, gas and electricity and are worried about receiving shut off notices, don’t wait to contact the very experienced lawyers at Bowser and Associates for a free consultation. Not being able to pay necessary utility bills usually indicates a more serious debt problem that can be resolved through a Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Once you have filled bankruptcy, you will be protected from utility shut offs. If your service has already been shut off, utility companies are required to continue your service, even if your past due bills have not been paid. Under Chapter 7 bankruptcy your overdue utility bills can be discharged completely similarly to other forms of unsecured debt. In a Chapter 13 bankruptcy all or some of your utility debt may be discharged as part of debt reorganization payment plan. Your qualified unsecured debt including overdue utility bills is consolidated into one manageable monthly payment. The amount that you are required to pay monthly payment is at a significantly lower rate and is based on your ability to pay or your income.
Utility companies may however require you to pay a small deposit in order to continue your service. You usually are given 20 days to pay this deposit to the utility company. This deposit is used as credit and is not applied to past due balances. After your bankruptcy filing date, you will be responsible for all future utility bills. Once you have established a satisfactory payment record with the utility company, your deposit will be returned. The attorneys at Bowser and Associates will review you financial situation and help you made the right decisions towards a secure financial future.
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