As more Americans face decreased income due to job loss, business closure or decreased access to credit, some of the simple, yet critical, things in life are now in jeopardy–simple things such as utilities. Many Dallas-Fort Worth residents who can’t afford to pay for lights, gas or even hot water face shutoff of their utilities. The most vulnerable citizens in Dallas-Fort Worth to utility shutoffs include senior citizens, the poor and families with young children.

If you are facing a utility shutoff, filing for bankruptcy will prevent the utility company from disconnecting your service. Of course you don’t want to file bankruptcy only because you are behind $300 on your utility bill; but most people facing utility disconnection are also struggling with their mortgage payments, credit card bills, and other debts. Utility disconnection is usually a chronic symptom of greater financial troubles that might be best handled in bankruptcy.

How It Works

Once your utility shutoff is stopped by filing bankruptcy you will be responsible for paying all utility bills you incur after your bankruptcy filing date. But the bills you owed before filing bankruptcy will be discharged in a Chapter 7 bankruptcy or included in your repayment plan in a Chapter 13 bankruptcy . Many utility companies will require bankrupt debtors to place a deposit with them to continue the utility service with their company; but usually will give the debtor 20 days to come up with the deposit. If the deposit is not paid, the utility service will be disconnected.

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