When you are in debt, making payments can be incredibly challenging. Something you may be falling behind on is payments to your utility company. Unfortunately, these missed payments can be consequential, with the company turning off your utilities. As such, you may wonder if it’s possible to stop a shutoff. Depending on the state of your finances, filing for bankruptcy may be able to delay this action. If you’re interested in filing, the following blog explores how an automatic stay works and why you should connect with a Memphis, TN consumer bankruptcy lawyer.
What Is the Automatic Stay?
When you file for bankruptcy, you are granted an automatic stay. This means that creditors and collectors must cease all collection efforts against you. Creditors must follow this as it is a court order. However, it’s important to understand that this is not universal. While the automatic stay can halt foreclosures, wage garnishments, and lawsuits, an automatic stay will not halt action to pay child support or alimony, IRS audits, or pension loans.
It’s imperative to understand that some creditors can petition the courts to lift the stay so they may resume collection efforts against you. It is up to the discretion of the court as to whether or not to lift the orders.
Will My Utilities Be Shut Off After I File for Bankruptcy?
If you are behind on utility payments, you’ll find that your provider will likely threaten to shut off your water, electricity, or gas. This can put you in a dire situation. However, an automatic stay will prevent the company from shutting off your utilities.
However, it’s critical to understand this automatic stay is only temporary. This will halt a shut-off for 20 days. In that time, you must prove you have the means to and intend to pay future bills. Typically, the company will require you to pay a deposit. If you do not pay,
What Should I Do if I Need Help?
Filing for bankruptcy can be an incredibly complex process and is not something that should be taken lightly. Though it can provide much-needed financial relief to those struggling with debt, it can also impact your credit. Generally, filing Chapter 7 bankruptcy will remain on your report for 10 years, while Chapter 13 will appear for 7.
As you can see, there are many things you must consider before filing. If you want to file for bankruptcy, it’s in your best interest to connect with an experienced bankruptcy attorney who can help you determine the best course of action for your needs while guiding you through this complex process.
If you are interested in filing to help prevent a utility shut-off, the team at the Arnold Law Firm can help. We understand how difficult it can be to navigate these matters, which is why we are committed to guiding you through this process. Reach out to our team today to discuss your circumstances in further detail.
