When you are in debt, it can be incredibly overwhelming. As such, many people describe this feeling as drowning, where the debt just continues to accumulate. If this represents your circumstances, you may be interested in filing for bankruptcy in Pennsylvania. However, you may be hesitant if you are unsure what will happen to your utility services during this time. The following blog explores what you can expect during these difficult times, as well as the importance of working with a Montgomery County bankruptcy lawyer to assist you through this process.
What Is the Automatic Stay?
When you file for bankruptcy, you will receive protection through the automatic stay. Essentially, this halts all collection efforts against you. When you file, your creditors will receive notification, and they are then required to cease all communication with you in regards to the debt you owe. In addition, all wage garnishments, foreclosures, lawsuits, and repossessions must immediately stop.
If a creditor violates the automatic stay, they can be penalized by the bankruptcy court. This most often entails fines and fees, but can also include actual and punitive damages awarded to the victim.
Typically, the automatic stay will last the duration of your bankruptcy case. As such, if you file Chapter 7, you’ll find that your case will generally only last six months, while a Chapter 13 filing can last three or five years, depending on your circumstances. Once the case is closed, collectors may resume efforts to recoup any remaining debt that has not been discharged after your case.
Will My Utilities Be Shut Off if I File for Bankruptcy?
In general, your utilities will not be shut off because they are granted protection under the automatic stay. As such, if you are behind on your payments, you must ensure these debts are included in your bankruptcy filing to receive protection. However, the insurance company can require adequate assurance within 20 days of filing, which serves as a deposit to protect future payments.
Additionally, you should note that when you file for bankruptcy, you can include debt accumulated from unpaid utility bills in your filing, and they can be discharged at the end of your payment. However, you will still be responsible for current and future bills for your utility services.
Unfortunately, filing for bankruptcy can be incredibly difficult to navigate, especially when you are worried about the impact it can have on essential services like gas, electricity, and water. As such, you’ll find that it’s imperative to connect with an experienced attorney with Mudrick & Zucker, P.C. Our team understands how difficult these circumstances can be, which is why we are committed to assisting you through these difficult times. Contact us today ot learn how we can assist you.
