Utility bills are a fact of life and you can count on them being there all year long.
But even necessities can be costly.
Every home needs clean water to drink and wash with every day. And though the needs may change with the season, heat and air conditioning – even at moderate levels, can be expensive. Energy efficient light bulbs and appliances use significantly less energy, but you’ll still owe the power board something for keeping them running.
These costs, even when you’re conserving energy, can add up quickly. If you lost a job or are struggling with medical bills, it’s easy to let your utilities fall by the wayside. When you fall in debt, the utility companies may be just as aggressive when going after you.
Fortunately, bankruptcy laws allow for your utility bills to be included in your bankruptcy filing. To learn more about how utility bill debt, and how filing for bankruptcy may be able to help, keep reading.
But if your utility bills are already out of control, and you need relief now, don’t wait. Complete the free form on this page to get a free case review from a local bankruptcy lawyer.
Utility bills can be structured differently depending on where you live, the structure of the government and whether you own or rent your home. Generally speaking, when we talk about utility bills we are talking about any basic service commodity. Common utilities include:
These may be basic needs, but they also cost money. These services may be provided by a city or county government or a private company.
In the eyes of bankruptcy court, these basic needs and the costs associated are viewed the same as other services. Although less essential, these may also be lumped in with your utility bills during your bankruptcy case.
When combined, all of these services may be considered your “monthly bills.” When times get tough, you may not have a hard time cutting out cable TV, but what will you do with no heat or water? Utility bills and unsecured debt
The type of debt you have will go a long way in determining which type of bankruptcy you file. All of your utility and service bills are considered unsecured debt.
Unsecured debt is any debt that isn’t associated with a specific piece of property. Your car loan, for example, is secured debt, because all the money you is directly tied to the car. Other types of unsecured debt include credit card bills, medical bills and personal loans.
Unsecured debt may be eliminated with either Chapter 7 bankruptcy or a Chapter 13 bankruptcy. Those are the two main types of personal bankruptcy, and they each work in different ways. They do, however, share a common goal: Resolving your debt.
Bankruptcy is designed to provide serious debt relief to people in serious need. And if you can no longer afford to pay for necessities like heat, water and light then it may be time to take real action.
All of your utilities – including gas, electric, water, telephone and cable – may be included in your bankruptcy case. Exactly how they will be resolved depends on the laws in your state and which type of bankruptcy you file.
If you’re in utility bill debt you may have multiple creditors. Many people choose to turn to a bankruptcy lawyer to help them handle multiple creditors and different types of debt. Your bankruptcy lawyer can answer your questions and take you through the process, showing you how the different bankruptcy laws in your state will apply to your case.
This could be the opportunity you need to get your life back under your control.
To speak with a local bankruptcy lawyer about your case for free, simple complete the free form on this page and we’ll connect you right away at no charge.